Singapore-based Keppel Offshore & Marine (Keppel O&M) has clinched a Floating Production Storage and Offloading (FPSO) conversion project as well as three repair, upgrade, and modification contracts worth a total of SGD125 million (USD90.3 million).
The conversion project is scheduled to be completed in the third quarter of 2016,after which the FPSO will be deployed to Madura Strait Block BD, 65 km east of Surabaya and about 16 km south of Madura Island, Indonesia.
Meanwhile, Keppel Shipyard, the parent company of Keppel O&M, has won major repair, upgrade, and modification contracts from new customers such as Totem Ocean Trailer Express (Totem Ocean) and Dolphin Drilling, as well as from returning customer like Saipem Offshore.
In the contract with Totem Ocean, Keppel will conduct the world’s first conversion of a large roll-on/roll-off cargo vessel, Midnight Sun, to operate on a dual-fuel diesel liquefied natural gas (LNG) propulsion system. The work undertaken by the shipyard will be complex , requiring the replacement of four engines, adding 2,200 m³ of LNG capacity along with the addition of 47 km of new cabling.
In the meantime, Keppel Shipyard’s contract with Dolphin Drilling entails renewal survey and modification for a drillship. Its project with repeat customer Saipem Offshore consists of major refurbishment and upgrading works that include installing a new 750-tonne abandon and recovery winch and an additional thruster, as well as a living quarters extension for a field development ship.
“Despite the headwinds faced by the industry due to the current low oil price environment, Keppel Shipyard continues to receive active enquiries for its wide range of expertise including repair works and liquefied natural gas (LNG) solutions,” said Michael Chia, Keppel O&M’s managing director for marine and technology.
“By leveraging our strong track record in repair, upgrade, and modification, as well as expanding on our LNG capabilities, which include extensive experience in LNG carrier repairs and Floating Storage Regasification Unit conversions, we are able to continue attracting new customers while maintaining the trust of repeat customers to keep our yards busy,” he added.