Keppel Offshore & Marine has clinched two contracts through its wholly-owned subsidiaries, Keppel AmFELS and Keppel Shipyard on September 22.
The contracts are worth a total of approximately $200 million.
Keppel AmFELS in the US will build a high-specification Trailing Suction Hopper Dredger (TSHD) for Manson Construction Co.
The TSHD will be the first dredger built at Keppel AmFELS’ yard in Brownsville, Texas.
When completed, the dredger will have a hopper capacity of 15,000 cubic yards and will operate primarily in the Gulf Coast and Atlantic Coast of the United States.
Measuring 420ft (128m) by 81ft (25m) and 28.5ft (8m), the TSHD will be the largest US hopper dredger ever built so far. The vessel is highly automated and comes with a diesel-electric power system.
In Singapore, Keppel Shipyard is undertaking the conversion of a Liquefied Natural Gas (LNG) carrier to a Floating Storage and Regasification Unit (FSRU) bound for the Port of Acajutla, El Salvador.
The contract was inked with FSRU Development Pte Ltd, a joint venture company between BW Gas Limited (BW LNG) and Invenergy Investment Company LLC (Invenergy).
The FSRU will be El Salvador’s first integrated LNG-to-power project. It is also the fifth built by Keppel Shipyard.
Both projects are on progressive payment terms.
To date, Keppel O&M has delivered four dredgers and is currently building another four, with hopper capacities ranging from 6,000 cubic metres to 10,500 cubic metres.
“This is an exciting first newbuild project for Keppel O&M with Manson Construction Co and we will be building the largest U.S. hopper dredger. We look forward to supporting Manson Construction Co as they grow their fleet of vessels,” says Chris Ong, CEO of Keppel O&M.
“Keppel O&M’s partnership with the BW Group has grown from strength to strength, having worked together on more than 10 projects, including FPSO and FSRU conversions. This demonstrates our close collaboration and BW Group’s confidence and trust in our capabilities.”
“Amidst the challenges of dealing with Covid-19, we have put in place measures across all our operations, whether in Singapore or the US, to ensure that work is conducted in both a responsible and efficient manner so that we can deliver the vessels safely, on time, and within budget,” Ong adds.
According to Keppel O&M, the contracts are not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation for the current FY.
Shares in Keppel Corp closed 9 cents lower, or 2.1% down, at $4.19 on September 21.
