Keppel wins $67 million in conversion contracts

Keppel Offshore & Marine Ltd. subsidiary Keppel Shipyard Ltd. has won two conversion contracts worth $67 million.

Offshore staff

SINGAPORE -- Keppel Offshore & Marine Ltd. subsidiary Keppel Shipyard Ltd. has won two conversion contracts worth $67 million.

The first contract, awarded by Prosafe, is for the conversion of a tanker into an FPSO. Subic Shipyard & Engineering Inc., an associate of Keppel Shipyard, will carry out the first phase of the conversion, which includes demolition and refurbishment and topsides preparation in the Philippines. Keppel Shipyard in Singapore will integrate the topsides modules and complete the conversion work.

The FPSO will have oil storage capacity of 700,000 bbl, production capability of 63,000 b/d of oil, and gas compression facilities capable of processing 80 MMcf/d. The FPSO will be equipped with a disconnectable internal turret mooring system designed by Prosafe. Apache plans to use the FPSO on the Theo-Van Gogh deepwater oil field offshore Western Australia.

Work on the vessel is expected to be completed by late 2008.

"Our partnership with Prosafe is characterized by open communication, teamwork, flexibility, and mutual understanding," says Nelson Yeo, executive director of Keppel Shipyard. "We will support Prosafe in their efforts to meet the requirements of the offshore industry."

The second contract is for an FSO conversion for repeat customer, Perenco SA. Keppel will convert a tanker into an FSO unit to be namedKalamu, a soft yoke moored vessel that will work off the coast of the Democratic Republic of Congo.

The conversion includes installing guide sheave foundations at the FSO's bow to enable connection to the soft yoke. It also includes upgrading accommodation facilities for 112 and installing a gas turbine power generation package and a metering skid unit. Water ballast tanks will be converted into cargo oil tanks, and cargo and ballast piping systems will be modified.

The FSO, to be completed in 1Q 2008, will have a storage capacity of 1 MMbbl.

9/26/2007

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