Keppel Verolme Secures Contracts Totaling EUR 75 Million

Keppel Verolme, a wholly owned subsidiary of Keppel Offshore & Marine Limited (Keppel O&M), has secured two contracts totaling EUR 75 million on the back of an upsurge of offshore activities in the North Sea.

Of the two new contracts, one is a repeat order for the outfitting of a Floating Production Storage and Offloading (FPSO) facility, Sevan Voyageur, for Sevan Production. Work is expected to be completed in the summer of 2008.

This is the third cylindrical FPSO facility that Keppel Verolme is carrying for the same owner. The vessel has an oil storage capacity of 300,000 bbls, with an oil process capacity of 30,000 barrels/day and a water injection capacity of 20,000 barrels/day.

The world's first cylindrical FPSO facility, Sevan Piranema, was completed in Keppel Verolme in January 2007. The second unit, Sevan Hummingbird, also completed by Keppel Verolme, was delivered recently. In all three projects, Keppel Verolme's scope of work entails the outfitting of marine and process equipment and final completion of all works for the facility at its location, with the hulls built in China.

Harold Linssen, Managing Director of Keppel Verolme said, "We are very flexible in our approach to business and our focus is on the creation of added value for customers.

"One of our business models is to offer project management services for a project. We provide customers with value added services in managing costs and project-execution issues such as scheduling and assessing risks. This model is favoured by new asset-developing and asset-owning companies in Europe looking for experienced and flexible yards to work with. This model is welcomed by Sevan Marine which has created the market's first three cylinder-shape FPSOs."

The first cylindrical design made its appearance in offshore industry in 2004. The cylindrical hull form is believed to have a competitive edge when compared to traditional type shiptype floaters. Developed for operation in deep water fields with the lower amount of hydrocarbons, it has comparatively larger processing plants and more numbers of risers making the facility more cost-effective. The facility is capable of taking on big loads and offering large deck areas and storage capacities.

The second contract that Keppel Verolme has secured is for the drydocking of Saipem 7000, a semisubmersible crane and pipelaying (J-lay) DP vessel for Saipem.

Saipem 7000 is the world's second largest crane vessel with lifting capabilities of up to 14,000 tonnes. On 11 December, the Saipem 7000 was successfully been drydocked in Keppel Verolme’s mammoth dock for its first time in her 20-years lifespan.

Keppel Verolme will renew the hull coating system and carry out maintenance works to the underwater equipment, such as the thrusters, overboard valves, quick ballasting system and the impressed current system. Work on Saipem 7000 is expected to be delivered in first quarter 2008.