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A UNIT of Keppel Offshore & Marine (O&M) has won a US$40 million contract that will see the delivery of the first tension leg wellhead platform (TLWP) to be deployed offshore Vietnam. The award by Vietnam's state-owned PTSC Mechanical & Construction (PTSC M&C) is also expected to be the first TLWP contract to be executed by Keppel FloaTEC LLC, a wholly owned subsidiary of Keppel Corporation's Keppel O&M.
The TLWP is to be built in Vietnam. Keppel FloaTEC's contracted work scope comprises hull and mooring engineering, topsides basic engineering and construction management support services. When completed, the TLWP will be located in a water depth of 320 metres. PTSC M&C is the main contractor for the engineering, procurement, construction and installation (EPCI) of the TLWP.
The first of its kind in Vietnam, the TLWP will be deployed in oil company Repsol's Ca Rong Do field development off the country's southern coast. The overall field development also includes a tender assisted drilling vessel and a floating production, storage and offloading vessel.
IHS Markit's principal researcher, Kelvin Sam, observed that the award is likely to be Keppel O&M's first independent contract win for a TLWP structure through Keppel FloaTEC. Prior to this, Keppel O&M had through FloaTEC LLC, a joint venture with McDermott, delivered similar floating structures including the Papa Terra tension leg platform to Petrobras.
But Keppel O&M said the intellectual properties and employees of FloaTEC LLC have been transferred to Keppel FloaTEC. The subsidiary of Keppel O&M will deploy the acquired resources from FloaTEC to execute its TLWP contract.
The Business Times has previously tipped Keppel O&M to land a role in the delivery of Vietnam's first TLWP. The announced value of the award to Keppel FloaTEC on Thursday, however, is just a fraction of the US$500 million estimated value market sources previously attached to the EPCI contract. This is mostly due to the fact that the TLWP has to be built in Vietnam. Still, Mr Sam commended Keppel O&M for being able to work around Vietnam's local content aspiration to win the TLWP contract. He said: "Increasing local aspiration is a condition contractors with international footprints like Keppel O&M have to work with these days."
Keppel O&M's acting chief executive, Chris Ong said: "With the close collaboration of our partners, PTSC and Repsol, backed by our complementary capabilities, we are focused on ensuring the successful delivery of this project."
PTSC M&C chairman and managing director Dong Xuan Thang said: "This is a significant milestone for Vietnam in expanding our capabilities to build a complex production platform in-country."
Keppel Corp shares closed two cents up at S$6.57 on Thursday.