Keppel Shipyard, the subsidiary of Keppel Offshore & Marine (Keppel O&M) announced on Nov 26 that it has secured a contract from a repeat customer worth $100 million.
The contract, which is scheduled for delivery in 4Q2022 is for the fabrication and integration work on a Floating Production Storage and Offloading vessel (FPSO).
Under the terms of the contract, Keppel Shipyard’s scope of work includes the fabrication, installation and integration of topside modules, riser balconies and spread mooring support structures, as well as supporting the customer on pre-commissioning and commissioning work.
Keppel Shipyard says it will begin pre-fabrication work on the topside components in 1Q2021 before the FPSO’s arrival.
See:Keppel O&M secures $600 mil contract in the offshore renewable energy industry
When completed, the FPSO will be capable of producing 220,000 barrels of oil per day and have an associated gas treatment capacity of 400 million cubic feet per day.
The contract is not expected to have a material impact on the net tangible assets (NTA) or earnings per share (EPS) of Keppel Corporation for the current financial year.
“We are pleased to secure our 140th conversion project to help meet the world’s need for energy. As the world’s leader in FPSO conversion and integration projects, we have built up strong capabilities to add value to our customers’ projects and efficiently deliver high quality FPSOs, while contributing to the circular economy with our conversion solutions,” says Chor How Jat, managing director of conversions & repairs at Keppel O&M.
Shares in Keppel Corporation closed 1 cent lower or 0.2% down at $5.23 on Nov 26.
