Keppel in Negotiations with Golar on FLNG Conversion Contract
- Business & Finance
Keppel Corporation confirmed that Keppel Shipyard Ltd (Keppel Shipyard) and its topside partners are currently negotiating conversion and liquefaction contracts with Golar LNG on the conversion of an existing LNG carrier into a Floating Storage and Liquefaction Vessel (FLSV).
The terms and conditions of the contracts, including the contract value and expected completion timeline, have yet to be finalised.
The negotiations on the contracts commenced following the conclusion in end August 2013 of a Front-End Engineering and Design (FEED) study conducted by Keppel Shipyard to confirm the engineering and work scope. The study confirmed that the conversion will take approximately 30 months from financial commitment to complete.
“We had announced this FEED study in a statement on 5 November 2012, where we also stated that upon completion of the FEED study, Keppel Shipyard would proceed to work with Golar LNG on the conversion and engineering of the first of three FLNG vessels. There will be an option to convert the other two FLNG vessels at a later date. We will make a further announcement upon the execution of firm contracts with Golar LNG,” said Keppel in its press release.
Keppel Corp, December 2, 2013