Keppel secures vessel conversion and repair projects worth S$85m

KEPPEL Shipyard, a unit of Keppel Corporation, has won four contracts totalling S$85 million for the conversion, repair and modification of vessels. They will be progressively completed from the third quarter of this year, till the third quarter of 2018.

The first contract is from Dixstone Holdings Ltd for the conversion of the M/T Tempera into an FPSO (floating, production, storage, and offloading) vessel. Work is expected to commence in Q3, 2017 and upon expected delivery in Q3, 2018, the FPSO will be deployed to the Yombo field operated by Perenco off the Republic of Congo, Africa.

For the second contract, Keppel Shipyard will carry out repair work for the life extension and conversion of an oil tanker, MTC Ledang, into an FPSO, for new customer MTC Engineering Sdn Bhd. Upon its completion in Q3, 2017, the FPSO will be deployed to the Ophir Field, offshore Peninsular Malaysia.

The third contract that is from Royal Boskalis Westminster NV (Boskalis), for the conversion of a semisubmersible heavy lift vessel, Finesse, to a crane vessel. The vessel, which is already berthed at Keppel Shipyard, will be completed in Q3, 2017.

For the fourth contract, Keppel Shipyard will carry out major refurbishment for an EXMAR Ship Management (Exmar) managed gas carrier, LNG Lerici. Work on the vessel has commenced and is expected to be completed in Q1, 2018.

Keppel Shipyard is a wholly-owned subsidiary of Keppel Offshore & Marine, which is in turn a unit of Keppel Corp.

Keppel Corp's counter was down by 0.64 per cent, or four Singapore cents, to close on Wednesday at S$6.240 before the announcement.