More upgrade and conversion work for oil & gas infrastructure comes Seatrium’s way

Seatrium Repairs and Upgrades, a subsidiary of Singapore-headquartered Seatrium Limited, has got a hold of a batch of new multi-billion dollar contracts with an aggregate value of S$350 million (around $258.9 million) for vessel repairs, upgrades, and conversions.

Hakuryu-5 semi-sub rig; Source: JDC

The diverse range of complex contracts, which are due to be completed by the end of 2025, encompasses the upgrades and conversions of floating storage regasification units (FSRU), life-extension and remediation works for floating production systems, LNG carriers’ repairs, cruise ships’ repairs and refurbishments, offshore and naval works.

Alvin Gan, Executive Vice President of Seatrium Repairs and Upgrades, commented: “We thank our customers for their confidence in Seatrium’s capabilities and for entrusting us with these important projects. Each of these projects demand strong project management, engineering and strong Health, Safety, Security and Environment (HSSE) and quality standards. With our expertise and extensive track records, we are committed to deliver safe, timely and reliable projects to our customers.”

Furthermore, Seatrium’s new deals to convert three LNG carriers (LNGC) into FSRUs for Karpowership, which come with an option for a fourth project, entail the installation of a regasification skid, as well as other supporting systems such as cargo, utility, spread-mooring, offloading, electrical, and automation systems.

These contracts are scheduled to begin in 2Q 2024 and build upon previous deliveries, including the Karmol LNGT Powership Africa, Karmol LNGT Powership Asia, and Karmol LNGT Powership Europe. Moreover, the Singapore-based player has also secured a contract with MODEC, which acts as the operator of a Woodside Energy-operated asset, to maintain and upgrade the FPSO Pyrenees Venture.

The work is slated to start in 2Q 2024. Upon completion, the FPSO is expected to be redeployed off the coast of Western Australia. Seatrium will also perform major remediation work for Chevron Thailand Exploration and Production, which is also anticipated to commence in 2Q 2024.

In addition, the company has been awarded a repair assignment for the Hakuryu 5 semi-submersible rig from Japan Drilling, along with a series of LNGCs dry docking under the favored customer contract with Hyundai LNG Shipping of South Korea and a string of naval work for 2024. The firm also landed retrofit deals for ten cruise vessels in 2024 with Carnival Corporation and Royal Caribbean Group.

Recently, Seatrium held a ceremony to mark the first steel fabrication milestone regarding the construction of an FPSO destined for an Equinor-operated pre-salt gas and condensate project off the coast of Brazil.