Keppel O&M secures contracts worth S$85 million from repeat customers

Keppel Offshore & Marine Ltd has secured S$85 million worth of contracts through its local and overseas subsidiaries. These include its third Floating Storage and Re-gasification Unit (FSRU) conversion job for GOLAR LNG. Mr Tong Chong Heong, CEO of Keppel O&M, said, “At Keppel O&M, we seek to be the industry’s choice partner for solutions. Our focus on excellent execution, coupled with a closely integrated network of overseas yards, enable us to take on a variety of projects and complete them to our customers’ satisfaction anywhere in the world.
 “The garnering of new jobs across Singapore, China and the US, reflects the robust partnerships and global brand name that we have built over the years. These strong foundations will continue to stand us firm in the current downturn and position us for future growth.”
Keppel Shipyard
Keppel Shipyard clinched two contracts from repeat customers for an FSRU conversion, and the refurbishment and life extension of a Floating Production Storage Offloading (FPSO) vessel.
Following the successful delivery of the world’s first two FSRUs, Golar Spirit and Golar Winter, Keppel Shipyard was awarded a third contract by GOLAR LNG to convert Golar Freeze from a Liquefied Natural Gas (LNG) Carrier into an FSRU.
The scope of work includes installing a re-gasification plant and power generators, and upgrading the control, electrical and marine systems.
Chartered by Dubai Supply Authority, the FSRU will be permanently moored alongside a purpose-built jetty within the existing Jebel Ali port in Dubai.
When completed in 2Q 2010, Golar Freeze will be capable of storing 125,000 cubic meters of LNG. The vessel will also have a maximum gas send-out capacity of 480 million standard cubic feet of re-gasified LNG per day for further delivery into the Dubai gas network.
On the second contract, Keppel Shipyard will undertake the refurbishment and life extension of Four Vanguard, an FPSO which it converted in 2003 for Four Vanguard Serviços E Navegaçao Lda, a company of Premuda group.
To be completed in 4Q 2009, the FPSO will be moored in the Woollybutt field on the North West shelf of Western Australia.
Keppel Nantong
Meanwhile, Keppel Nantong Shipyard has received an order to build two 45-ton bollard pull twin-screw Azimuth Stern Drive (ASD) tugboats from Keppel Smit Towage Pte Ltd (KST). These vessels will be built to Keppel O&M’s proprietary design, developed by its technology unit, Marine Technology Development.
Delivery of the two tugboats is expected in 2Q 2010. Including these vessels, Keppel Nantong is currently building a total of 11 tugboats for KST.
Keppel FELS
In Singapore, Keppel FELS secured a contract from Seadrill Ltd for the special survey, repair and upgrading of a jackup rig, West Janus.
Reinforcing its reputation for quick turnaround services, the rig is expected to be delivered by end-August 2009. The scope of work includes steel renewal, leg repairs, modification of the shaleshaker house and the replacement of the top drive system.
Keppel AmFELS
Over at Brownsville, Texas, Keppel AmFELS was awarded jobs by longtime customer, Diamond Offshore, for the repair, refurbishment and upgrading of two rigs.
Ocean Ambassador, a Bethlehem 2000 Class semisubmersible drilling rig, arrived at Keppel AmFELS for stability upgrade and repairs. The second unit, Ocean Summit, a Levingston Class 111-C jackup, underwent repairs and refurbishment at the yard.
Both rigs were redelivered to Diamond Offshore on time. Ocean Ambassador is enroute to her deployment offshore Brazil with OGX, while Ocean Summit has begun operations for PEMEX in Mexico.
The above contracts are not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation for the financial year ending 31 December 2009.
A wholly-owned subsidiary of Keppel Corporation, Keppel O&M is a leader in offshore rigs, shiprepair and conversion and specialised shipbuilding. Keppel O&M’s near market, near customer strategy is bolstered by a global network of 20 yards and offices in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be the provider of choice and partner for solutions for the offshore and marine industry.