Saipem Seals Conversion Deal for Two VLCCs

  • Business & Finance
VLCC Antartica
VLCC Antartica

Saipem SA, France has signed a Floating Storage Production Offloading (FPSO) conversion contract worth about S$600 million (USD $483.2 million) with Sembcorp Marine’s wholly-owned subsidiary Sembawang Shipyard.

Under the contract, the shipyard is responsible for the conversion of two Very Large Crude Carriers (VLCCs) sister ships into 2 turret-moored FPSOs for the Kaombo project offshore Angola, approximately 150 km from the coast.

The first VLCC, Olympia, is expected to enter Sembawang Shipyard in third quarter 2014 while the second VLCC, Antartica, will be in the shipyard in first quarter 2015. The total project duration will be 32 months.

The two VLCCs are currently owned by Euronav and were built in 2008 and 2009, respectively, by Hyundai Heavy Industries.

Major works include refurbishment of the VLCCs, construction engineering, the fabrication of flare, helideck, upper turret and access structure, integration of the topsides modules (which will be fabricated at Saipem’s Indonesian Yard) and lower turret components, and pre-commissioning of the FPSOs.

VLCC Olympia
VLCC Olympia

The two converted FPSO units, owned by Total, will each have an oil treating capacity of 115,000 barrels per day, a water injection capacity of 200,000 barrels per day, a 100 million scfd gas compression capacity and a storage capacity of 1.7 million barrels of oil.

Mr. Ong Poh Kwee, Deputy President of Sembcorp Marine and Managing Director of Sembawang Shipyard, said: “The award is a strong endorsement of our shipyard’s capabilities in the highly specialised field of FPSO conversion, modification and upgrading work. The buoyant offshore market offers exciting opportunities for both the shipyard and owners and we look forward to a long-term collaborative partnership with Saipem.”

Press Release, July 21st, 2014, Image: Euronav

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