Keppel O&M unit secures S$100m contract for FPSO project

A SUBSIDIARY of Keppel Offshore & Marine (Keppel O&M) has secured a S$100 million contract from a repeat customer for fabrication and integration work on a floating production storage and offloading vessel (FPSO).

The work is scheduled for delivery in the fourth quarter of 2022. The scope of work for Keppel Shipyard, the wholly owned subsidiary, includes the fabrication, installation and integration of topside modules, riser balconies and spread-mooring support structures; the contract also includes supporting the customer on pre-commissioning and commissioning work.

When completed, the FPSO will be capable of producing 220,000 barrels of oil per day and have an associated gas-treatment capacity of 400 million cubic feet per day.

Ahead of the arrival of the FPSO in the yard, Keppel Shipyard will commence pre-fabrication work on the topside components in the first quarter of next year.

Chor How Jat, managing director for conversions and repairs at Keppel O&M, said: "We are pleased to secure our 140th conversion project to help meet the world's need for energy. As the world's leader in FPSO conversion and integration projects, we have built up strong capabilities to add value to our customers' projects and efficiently deliver high-quality FPSOs, while contributing to the circular economy with our conversion solutions."

He added that in light of the Covid-19 situation, the company has put in place safety measures to maintain operations and ensure that each project is delivered as planned.

Keppel shares closed at S$5.23 on Thursday, down a Singapore cent or 0.19 per cent.