Keppel’s offshore and marine unit secures projects worth $120 mil

Keppel Offshore & Marine’s wholly owned subsidiary Keppel Shipyard has secured four contracts worth a total of about $120 million from repeat customers, says Keppel Corp in a aftermarket filing on Thursday.

The first contract secured is from BW Catcher, 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 UK’s section of the North Sea. Fabrication of the turret is expected to be completed in 3Q 2017.

For the third contract, Keppel Shipyard will carry out upgrading work to the pipelay vessel, Castorone, for Saipem Offshore Norway AS. Scheduled for completion in 3Q 2016, the job scope includes the replacement of switchboards to improve the vessel’s power distribution systems, renewal works on 45km 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.

The last 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. Shipyard construction work is targeted to start in 2Q 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, says, “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 for the current financial year, says the group.

Keppel shares closed 0.54% higher at $5.58.

This article first appeared in The Edge Singapore Market Report.

Read more: 5 Important Things You Need to Know About Keppel Corporation Before You Invest

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