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Keppel Shipyard bags four contracts worth S$120 million

KSL Benoi yard Keppel.jpg
Keppel Offshore & Marine's wholly-owned subsidiary, Keppel Shipyard, has secured four contracts worth a total of about S$120 million from repeat customers.

KEPPEL Offshore & Marine's wholly-owned subsidiary, Keppel Shipyard, has secured four contracts worth a total of about S$120 million from repeat customers.

The first contract that Keppel Shipyard secured is from a wholly-owned subsidiary of BW Offshore, for the installation and integration of topside modules for a newbuild floating, production, storage and offloading (FPSO) vessel. Upon its completion, the FPSO will be deployed to the Catcher Field located in Central North Sea, UK, which is operated by Premier Oil.

The second contract is from Sofec Inc to fabricate an internal turret mooring system for a floating, storage and offloading vessel that will operate in Maersk Oil's Culzean Field in the UK's section of the North Sea. Fabrication of the turret is expected to be completed in Q3 2017.

The third contract is from Saipem Offshore Offshore AS for upgrading work on the pipelay vessel, Castorone. Keppel Shipyard's job scope includes the replacement of switchboards to improve the vessel's power distribution systems, renewal works on 45 kilometres of electrical cables, various pipelay system upgrades as well as the construction of new water ballast tanks and conversion of old ones into fuel oil tanks to optimise the vessel's capabilities. Already berthed at Keppel Shipyard, upgrading work for Castorone is scheduled to be completed in Q3 2016. Keppel Shipyard previously undertook integration and completion works in 2011 on Castorone, which was initially commissioned as a newbuild project to a Chinese yard.

The fourth contract is from Woodside Energy for the modification and upgrading of the FPSO vessel Ngujima-Yin to support the Greater Enfield Project. The shipyard's job scope includes marine and hull life extension and refurbishment works; installation of new customised water flood module, turret risers and power and control module; as well as modification of swivel system, marine and topside related piping. The detailed engineering phase is expected to commence in July 2016 while the shipyard construction work is targeted to start in Q2 2018. Upon its completion, the Woodside-operated Ngujima-Yin FPSO will be deployed back to the Greater Enfield area located in Western Australia.

Michael Chia, managing director (Marine & Technology) of Keppel O&M, said: "We are pleased to secure new orders from long-time customers who continue to entrust their projects with us, whether it is for turret fabrication or vessel upgrades. Leveraging our comprehensive range of marine services, proven execution excellence and experience, we continue to be the trusted and preferred partner in the industry, providing cost-effective and robust solutions."

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