Keppel Lands $110MM Contracts for Work on 3 Vessels

Keppel Shipyard reported that its excellent track record features secured contracts amounting to $110 million for the upgrading, modification and conversion of three vessels from repeat customers.

The first contract is from Bumi Armada Berhad for the upgrading and conversion of a tanker into a floating production storage and offloading facility (FPSO). Bumi Armada Berhad is the largest owner and operator of offshore support vessels in Malaysia which is growing in FPSO installations.

The scope of work includes the fabrication, installation and integration of a 12-point spread mooring system, riser balcony, topside facilities and upgrade of accommodation and auxiliary support systems.

When completed in the first half 2009, the FPSO Armada Perdana will have a storage capacity of 1 million barrels of oil and be capable of processing 40,000 barrels of oil per day (bopd).

The second contract is for the jumboisation of a dredger from Boskalis Westminster Shipping B.V. (Boskalis), an operating company of Royal Boskalis Westminster nv in the Netherlands. This project is to enhance the dredging capabilities of their Trailing Suction Hopper Dredger, Queen of the Netherlands, and will be Keppel’s second such jumboisation project with Boskalis.

When completed in the first quarter of 2009, the vessel’s hopper capacity will be increased from 23347m3 to 35500m3, making it one of the largest of its kind in the world.

The third contract is from BW Offshore Limited for the upgrading and modification of an FPSO for the Tupi field in Brazil. To be converted according to Petrobras' requirements, the FPSO BW Peace will be renamed BW Cidade De Sao Vicente. It will be the first FPSO to enter the gigantic TUPI deepwater field outside Rio de Janeiro.

BW Cidade De Sao Vicente will be the third FPSO awarded to Keppel Shipyard by BW Offshore. This fast track FPSO project is expected to be completed by the end of 2008. BW Offshore is one of the world’s leading FPSO contractors and a market leader in advanced offshore loading and production systems to the oil and gas industry.

Executive Director of Keppel Shipyard, Nelson Yeo, said, "I am glad that our previous collaborations with various owners and operators have convinced them that Keppel Shipyard is the right shipyard for them. We will continue to enhance our partnership with our customers to provide safe and high quality services in the current tight market conditions."