Keppel Shipyard Nabs FPSO Conversion Deal
- Business & Finance
Singapore-based Keppel Shipyard Ltd has secured a Floating Production Storage and Offloading (FPSO) conversion contract as well as three repair, upgrade and modification contracts worth a total of about SGD 125 million (USD 89.2m).
The FPSO conversion project Keppel Shipyard will be undertaking is for Armada Madura EPC Limited, a joint venture between Malaysia’s Bumi Armada Berhad and Mumbai-based Shapoorji Pallonji Group.
“This is our third conversion/upgrading project for the joint venture. We are confident that this FPSO will be as successful as our first two FPSOs, Armada Sterling and Armada Sterling II, which have been performing excellently at the D1 field and Cluster 7 field in India respectively. This also marks our thirteenth conversion/upgrading project for Bumi Armada,” Michael Chia, Managing Director (Marine & Technology), Keppel O&M, said.
“FPSOs continue to be the preferred product for deepwater production and we are pleased that our customised FPSOs have proven to be efficient solutions for our customers. We will continue to work with our partners to provide more value-added and cost-efficient solutions to meet their needs.”
Work on the FPSO conversion, which has commenced, is scheduled to complete in 3Q 2016. Upon completion, the FPSO will produce for the Madura Strait Block BD which is located 65km east of Surabaya and about 16km south of Madura Island, Indonesia.
Separately, Keppel Shipyard has been awarded repair, upgrade and modification contracts by Totem Ocean Trailer Express Inc. (Totem Ocean), Dolphin Drilling Limited and Saipem Offshore Norway AS.