Keppel Shipyard, the wholly-owned subsidiary under Keppel Offshore & Marine (Keppel O&M), has secured a contract worth US$2.3 billion ($3.05 billion) from Brazil’s National Oil Company, Petroleo Brasileiro S.A (Petrobras), for the turnkey delivery of P-78, a Floating Production, Storage and Offloading vessel (FPSO).
The contract was won on the basis of an international tender.
The FPSO is scheduled to be completed in late 2024, and will be customised for deployment in Brazil’s Buzios field, the largest deepwater oil field in the world.
With a production capacity of 180,000 barrels of oil per day (bopd), 7.2 million cubic metres of (mcbm) gas per day and a storage capacity of 2 million barrels of oil, the P-78 will rank among the largest in the global operating fleet of FPSOs.
The contract is on an engineering, procurement and construction (EPC) basis, where the execution of the project will take place in multiple locations around the world.
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Keppel O&M will fabricate the topside modules weighing 43,000 metric tonnes (MT) at its shipyards in Singapore, China and Brazil, as well as undertake the integration and commissioning works of the FPSO.
Keppel O&M’s partner, Hyundai Heavy Industries Co., Ltd. (HHI), will provide the 85,000MT hull and the living quarters for 240 persons.
Upon completion, the FPSO will transit to the Buzios field, where Keppel O&M will carry out the final phase of offshore commissioning works.
“We are pleased to support Petrobras with another major FPSO where we are taking on a much larger scope than ever before. This project taps our well-recognised capabilities as a leading integrator of offshore energy and infrastructure assets, leveraging our strengths in engineering and project management, with a focus on higher value-adding work,” says Chris Ong, the CEO of Keppel O&M.
“It is also aligned with the transformation plans which we had announced, where not all of the work will be done at our yards. We are excited to partner with industry leaders like HHI and DORIS Engenharia in Brazil, harnessing our complementary strengths and enabling Keppel O&M to expand our turn-key offerings across the value chain,” Ong adds.
“At the same time, we are able to utilise our global network of operations and bring a sizeable amount of the work to Brazil, generating thousands of job opportunities for the local eco-system.”
The contract, which will be on progressive milestone payments, is not expected to have a material impact on Keppel Corporation’s net tangible assets (NTA) or earnings per share (EPS) for the current financial year.
Shares in Keppel Corp closed 5 cents lower or 0.9% down at $5.31 on May 10.
