Keppel Offshore & Marine, a Singapore shipyard, has been granted contracts totaling $186 million from repeat clients.
Keppel was awarded contracts to convert a Floating Storage and Regasification Unit (FSRU), integrate a Floating Production Storage and Offloading (FPSO) vessel, and jumboize two Trailing Suction Hopper Dredgers (TSHD).
“Amid the tough industrial climate and interruptions caused by Covid-19, we are glad to obtain contracts from repeat clients,” said Chor How Jat, Managing Director of Keppel O&M.
“Our customer-focused approach and execution experience allow us to constantly produce quality, dependable, and value-added solutions for clients.” Despite the obstacles created by the pandemic over the previous two years, we have proved our resilience and operational expertise in completing our projects successfully,” he said.
Conversion of FSRU
For the first contract, Keppel Shipyard obtained the Final Notice to Proceed for the EPC conversion of an LNG carrier into an FSRU from GAS-fifteen Ltd, a subsidiary of GasLog Carriers. This comes after Keppel Shipyard announced in November 2021 that it had signed a Limited Notice to Proceed to begin early work on the conversion.
For this project, the yard’s scope of work comprises the EPC of the regasification skid, as well as supporting systems such as boilers, spread mooring, unloading, electrical, and automation systems.
The FSRU will be placed in seas 10 miles southwest of Alexandroupolis, Greece, and will have an overall delivery capacity of 194 billion cubic feet per year, with a maximum send out of 776.8 million cubic feet per day.
The FSRU will ultimately be sold to the Greek business Gastrade S.A., which will provide natural gas to markets in Southeastern Europe.
This will be Keppel Shipyard’s sixth major FSRU conversion, after converting the world’s first FSRU in 2008.
Integration of FPSO
The second contract is for the installation and integration of topside components aboard the Bacalhau FPSO, and it is between Keppel Shipyard and Modec. The yard’s scope of work also includes the construction of a flare tower and two crane pedestals, as well as the assembly and installation of two deck cranes, as well as Modec completion and commissioning assistance.
The FPSO’s hull should arrive in Singapore in the second half of 2022, with delivery in the second half of 2023. The FPSO will be deployed for Equinor and its field partners at the Bacalhau field in the Santos Basin, offshore Brazil, after it is completed.
The FPSO has a minimum storage capacity of 2 million barrels and can produce and inject up to 530 million standard cubic feet of associated gas per day, as well as inject up to 200,000 barrels of saltwater per day, making it one of the biggest FPSOs ever supplied to Brazil.
So far, Keppel has completed 12 projects for the Modec group, including FPSO conversions, module manufacture and integration, and turret projects.
Dredger Jumboization
The other contracts are for the repair and jumboization of two Trailing Suction Hopper Dredgers by Keppel Shipyard and Boskalis (TSHDs).
The first TSHD has begun construction and will be delivered in the second quarter of 2022. The second TSHD is expected to arrive in the third quarter of 2022, with a re-delivery slated for the fourth quarter.
Each vessel will be outfitted with a new owner-furnished block, bringing the entire length of the vessel up to 660 feet. Both boats will be refurbished at the same time, with equipment overhauled and replaced.
The aforementioned contracts are not anticipated to have a significant effect on Keppel Corporation’s net tangible assets or earnings per share in the current fiscal year.
