Singapore: Keppel Shipyard Enters Term Sheet Agreement for LNG Conversion

Keppel Shipyard Ltd (Keppel Shipyard) has entered into a term sheet agreement with Golar LNG Ltd (Golar LNG), to work together on the conversion of up to three LNG vessels into Floating LNG (FLNG) vessels worth US$600m.

This term sheet agreement requires Keppel Shipyard to start with a Front-End Engineering and Design (FEED) study to confirm the engineering and work scope.

Upon completion of the FEED study, Keppel Shipyard will then proceed to work with Golar LNG on the conversion and engineering of the first of the three FLNG vessels. There will be an option to convert the other two FLNG vessels at a later date.

The contract will be executed upon satisfactory completion of the definitive engineering, cost estimate and schedule for the conversion works.

[mappress]
Keppel Shipyard, November 5, 2012