Photo: One of Keppel's shipyards; Source: Keppel

Keppel O&M gets integration contracts for two FPSOs

Singapore’s Keppel Offshore & Marine, through its subsidiary Keppel Shipyard, has been awarded contracts worth around S$250 million (about $181 million) from repeat customers for the integration of two floating production storage and offloading (FPSO) vessels.

The first contract is between Keppel Shipyard and BW Offshore to undertake the integration work on a newbuild FPSO. This follows the Letter of Award that Keppel Shipyard received from BW Offshore, as announced by Keppel on 25 November 2021.

Keppel Shipyard said it will be responsible for the installation and integration works of about 43,000 tons of topside modules, deck equipment and the turret mooring system, as well as completion and commissioning support for BW Offshore. The hull of the FPSO is expected to arrive in Singapore in mid-2023, with delivery scheduled for 2H 2024.

Keppel Shipyard has also signed contracts with Single Buoy Moorings, Inc. (SBM), as well as a joint-venture company between SBM and McDermott to undertake the fabrication, installation, and integration of topside modules for an FPSO project.

The yard will also support SBM with pre-commissioning and commissioning work. The work is expected to begin in 2H 2022 ahead of the FPSO hull’s arrival in the yard in 1H 2023, with delivery scheduled for 2H 2024.

Keppel has not revealed the names of the FPSOs it will be working on nor their respective projects.

Chor How Jat, Managing Director (Conversions & Repairs), Keppel O&M, said, “Despite a volatile market, we are pleased to be awarded contracts from our longstanding customers as it is a testament to the partnerships that we have built up over decades of collaboration. We are seeing signs of fundamental improvement in the market, and are well-positioned to team up with customers to provide innovative, reliable, quality, and value-added solutions.”

Several months ago, Keppel secured contracts worth around S$250 million for the conversion of a floating storage and regasification unit (FSRU), the integration of a floating production storage and offloading (FPSO) vessel, and the jumboisation of two trailing suction hopper dredgers (TSHD).

In late April, Keppel’s discussions with Sembcorp Marine related to a proposed merger of the two companies finally bore fruit and the two inked definitive agreements for the proposed combination.

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The new company will continue to serve the demand for floating production systems, such as FPSO units, and other offshore oil & gas solutions, which is estimated to amount to a S$290 billion opportunity in terms of market size, through focusing on innovating and applying new technologies to reduce the carbon footprint of such structures.