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Keppel O&M secures contracts worth S$160m from repeat customers

KEPPEL Corporation unit Keppel Offshore & Marine (Keppel O&M) has, through its subsidiaries, secured integration and upgrading contracts worth about S$160 million in total, Keppel announced on Wednesday night.

The contracts are from repeat customers. One is between Keppel Shipyard and a leading operator of oil and gas production vessels for fabrication and integration work on a floating production storage and offloading vessel. Work is expected to start in Q3 2019 with delivery scheduled for 2021.

The second contract is between Keppel FELS and Diamond Offshore for the upgrade of the drilling semisubmersible rig Ocean Onyx. The rig was first upgraded in 2012 by Keppel AmFELS, Keppel O&M's yard in the United States, from an old semisubmersible rig.

Scheduled for delivery in the second half of 2019, Ocean Onyx will initially be deployed offshore Australia. Keppel FELS has worked on more than 12 projects with Diamond Offshore since 2005.

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Keppel said the contracts are not expected to have a material impact on its net tangible assets or earnings per share for the current financial year.

Keppel Corp closed up 15 Singapore cents or 2.27 per cent at S$6.76 on Wednesday before the announcement.