Keppel secures FPSO conversion contracts

Offshore staff

SINGAPORE -- Keppel Offshore & Marine Ltd. has secured contracts for FPSO conversion and shipbuilding projects totaling $105.7 million.

Keppel Shipyard Pte. Ltd. won contracts for two FPSO conversions. One is from SBM Holdings Inc. SA. The other is from Emas Offshore Construction and Production Pte. Ltd.

The work scope for the SBM conversion includes updating accommodations, fabricating and installing an internal turret mooring system, piperacks, modules supports, helideck, and shipside sponson tanks. Keppel also will install the power generation system and topside process modules.

The conversion of the 268,865 dwt VLCC is expected to be completed in 3Q 2008. The vessel will be able to produce up to 100,000 b/d of oil, with storage capacity of about 1.6 MMbbl.

The FPSO will be leased by a SBM/MISC JV to the BC-10 Consortium operated by Shell. The vessel will be used to develop the BC-10 field in the Campos basin offshore Brazil. This field is expected to be one of the key milestones in the commercialization of heavy oil in Brazil's deepwater.

The second contract is for the conversion of a shuttle tanker. The convertedLewek FPSO 1 will be deployed in the Gulf of Thailand.

Keppel Shipyard will carry out the overall project management and completion of the FPSO, including fabricating and installing the flare tower, and installing and integrating the topside modules. Sister yard, Subic Shipyard and Engineering Inc. will undertake repair and refurbishment work and part of the conversion, including bow modification for a mooring system, as well as fabrication and installation of the helideck, pipe racks, and module supports.

The vessel is expected to be completed in mid 2008.

Meanwhile, Keppel Nantong Shipyard has received an order to build three 65-ton bollard pull twin-screw azimuth stern drive tugboats from Keppel Smit Towage Pte. Ltd. These vessels are of the proprietary MTD 3265ST design developed by Keppel Singmarine's technology unit. The vessels are expected to be delivered between 3Q 2009 and 1Q 2010.

Finally, Keppel Philippines Marine Inc. has sold two 45-ton bollard pull tugboats to Keppel Smit Towage. The two boats are being built in the Keppel Batangas Shipyard and Keppel Cebu Shipyard in the Philippines and are expected to be completed by 3Q 2007. KPMI delivered two similar tugs to Maju Maritime Ltd., a sister company of Keppel Smit Towage, in 2006.

Keppel Smit Towage is 51% owned by Keppel O&M subsidiary KS Investments Pte. Ltd.

Keppel Shipyard, Keppel Nantong Shipyard, and Keppel Philippines Marine Inc are subsidiaries of Keppel Corp. Ltd. through Keppel O&M.

4/24/2007