Keppel Shipyard Limited (Keppel Shipyard), a wholly owned subsidiary of Keppel Offshore & Marine (Keppel O&M), has secured new contracts totalling S$170 million for two fast-track projects.
The new jobs comprise completing a Pipe Laying Vessel for Saipem S.p.A (Saipem) and converting a Floating, Storage and Offloading (FSO) vessel for Bumi Armada Berhad (Bumi Armada).
Mr Nelson Yeo, Managing Director (Marine) of Keppel O&M, said: "This is a reflection of our customers' confidence in Keppel's ability to deliver value-added services competitively and with high standards of quality and safety.
"As an integrated solutions provider, many of our client partnerships are shared by several companies within the Keppel O&M group. Such is the case with returning customers Saipem and Bumi Armada who are also collaborating with Keppel Shipyard's sister companies on some of their other projects."
The first contract was awarded by Saipem for the completion of a newbuild pipe laying vessel, Castorone. The major work scope includes detailed engineering, constructing marine systems and outfittings, installing and integrating marine and pipe laying equipment as well as commissioning the marine systems and sea trials.
Sister company, Keppel Singmarine, will jointly execute this project with Keppel Shipyard.
Castorone is expected to arrive in Keppel Shipyard towards the end of 1Q 2011. When completed in mid 2012, the technologically advanced Castorone will be equipped with a Dynamic Positioning 3 system and will be able to lay triple-jointed 12 m (or double-jointed 18m) pipes of up to 60 inches through an 'S' lay method. The vessel will also be equipped for the future addition of a fixed tower for pipe laying in the 'J' lay method.
Keppel FELS, another company in the Keppel O&M group, is currently commissioning the technologically advanced Frigstad D90 semisubmersible rig, Scarabeo 9, for Saipem.
The second contract is from repeat customer Bumi Armada for the conversion of a tanker into an FSO vessel. Work which commenced in 1Q 2011 includes refurbishment and life extension works, fabrication and installation of the cargo offloading balcony and helideck, installation and integration of a 12-point spread mooring system, and the upgrading of accommodation facilities.
Mr Hassan Basma, Executive Director and Chief Executive Officer of Bumi Armada, said: "Working with Keppel is one of the partnerships which we have developed over the years of collaboration. One that is built on trust. The first three projects which Keppel has undertaken for us were high quality vessels, delivered promptly and safely. We look forward to yet another FSO to complement our fleet here in Asia."
When completed in the second half of 2011, the converted FSO vessel with storage capacity of 500,000 barrels of oil will be deployed on the Sepat oilfield (Block PM 313), located off the eastern coast of Peninsular Malaysia.
Keppel Shipyard is also currently carrying out the conversion of an FPSO for Bumi Armada, destined for the TGT (Te Giac Trang or White Rhinoceros) oilfield in Vietnam.
The above contracts are not expected to have material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year.