Keppel Hammering Out 2nd FLNGV Conversion Deal

Keppel Shipyard Ltd, a wholly-owned subsidiary of Keppel Offshore & Marine Ltd, has entered the finalising stage of the contract negotiations with Golar Gimi Limited, a subsidiary of Golar LNG Limited, to perform the conversion of a second Moss LNG carrier, the GIMI, into a Floating Liquefaction Vessel (FLNGV).

Earlier on 3 July 2014, Keppel Shipyard was awarded a firm contract by Golar Hilli Corporation to perform the world’s first-of-its-type conversion of a Moss LNG carrier, the HILLI, into an FLNGV, and the contract included options for another two similar units. The forthcoming conversion award of the GIMI will mark the exercise of the first of these two options.

The work scope for Keppel Shipyard in converting the GIMI is expected to be similar to that for the HILLI.

Keppel Shipyard will be responsible for the provision of the design, detailed engineering and procurement of the marine systems and all of the conversion-related construction services.

It is also expected that Keppel Shipyard’s scope will include engaging Black & Veatch to provide design, procurement and commissioning support services for the topsides and liquefaction process.

A further announcement will be made upon the execution of a firm contract, which is expected by October 2014, for the conversion of the GIMI.

Upon execution of the contract, full construction activities will only commence when Keppel Shipyard receives a notice to proceed which is expected to be given on or after 1 January 2015 but no later than November 2015.

Keppel Corporation Limited has also announced that KSI Production Pte Ltd, an indirect wholly-owned subsidiary of the Company, on September 4, 2014 entered into a sale and purchase agreement to acquire 10% shareholding interest in the total registered issued share capital of Golar Hilli Corporation from Golar GHK Lessors Limited.

Keppel states that the acquisition strengthens the alignment of strategic interests between Keppel Shipyard Limited and Golar LNG Limited, and reflects Keppel’s confidence in the prospects of Golar HILLI, the world’s first FLNGV conversion project.

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