Keppel O&M bags FPSO integration contracts totalling around S$250m
KEPPEL Offshore & Marine (O&M), through its wholly-owned subsidiary Keppel Shipyard, has been awarded contracts worth around S$250 million from repeat customers.
The contracts are for the integration of 2 floating production storage and offloading vessels (FPSO), Keppel Corporation said on Friday (May 6).
The first contract is with BW Offshore, a unit of maritime company BW Group, to undertake the integration work on a newbuild FPSO.
Keppel Corp had in November 2021 said its O&M unit received a letter of award from BW Offshore for the integration work, adding that it was expecting the contract to be signed by early 2022.
Keppel Shipyard will install and integrate works of about 43,000 tons of topside modules, deck equipment and the turret mooring system, as well as provide completion and commissioning support for BW Offshore.
It expects the hull of the FPSO will arrive in Singapore in mid 2023 and be scheduled for delivery in the second half of 2024.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The other contracts are with Dutch-based floating production solutions provider Single Buoy Moorings (SBM), as well as with a joint-venture between SBM and US-based engineering company McDermott.
Keppel Shipyard will undertake the fabrication, installation, and integration of topside modules for an FPSO project, and the yard will also support SBM with pre-commissioning and commissioning work.
It expects work will begin in the second half of 2022, before the FPSO’s hull arrives in the first half of 2023, and be scheduled for delivery in the second half of 2024.
Late in April, Keppel O&M and Sembcorp Marine (Sembmarine) said their merger, which had been anticipated for decades, was finally in the works and would create a global offshore powerhouse valued at S$8.7 billion to tap the green energy boom.
Shares of Keppel Corp closed at S$6.79 on Friday, down 11 cents..
Copyright SPH Media. All rights reserved.
