Keppel Offshore & Marine unit wins US$40m contract

A wholly owned subsidiary of Keppel Offshore & Marine (Keppel O&M) has secured a US$40 million contract tied to a tension leg wellhead platform (TLWP) for oil company, Repsol's Ca Rong Do field development off Vietnam.

The contract awarded to Keppel FloaTEC by Vietnam's state-owned PTSC Mechanical & Construction (PTSC M&C) involves providing engineering, technology and construction management support services for the TLWP.

Keppel O&M announced the contract award in a release after Thursday trading hours. It also said that the intellectual properties and employees of a joint venture with McDermott, FloaTEC LLC, have been transferred to Keppel FloaTEC LLC.

The Business Times understands these resources will be deployed for the execution of the TLWP contract.

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 of the TLWP.

The first of its kind in Vietnam, the TLWP will be deployed in the Ca Rong Do field development off southern Vietnam. The overall field development also includes a tender assisted drilling vessel and a floating production storage and offloading vessel.

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. I am confident that this TLWP will become the preferred proven solution for projects of similar water depths."

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. PTSC M&C is proud to be the main contractor for this first TLWP project in Vietnam and will work closely with all involved parties, including Keppel FloaTEC, to ensure the success of the project with the highest commitment of safety, quality and schedule."