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Keppel secures integration and upgrading contracts worth around S$160 million

Keppel O&M has, through its wholly-owned subsidiaries Keppel Shipyard Ltd (Keppel Shipyard) and Keppel FELS Limited (Keppel FELS), secured integration and upgrading contracts worth a combined value of about S$160 million.

“These contracts from repeat customers are testament to Keppel O&M’s strong customer service in delivering on time, within budget and safely as well as our extensive track record in modification and upgrading projects for a wide variety of products such as FPSOs and drilling rigs,” Chris Ong, CEO, Keppel O&M, said.

“With strong engineering expertise and project management capabilities, we work closely with our clients to understand their requirements and provide customized, reliable, cost-efficient and value-added solutions,” Mr Ong added.

The first contract is between Keppel Shipyard and a leading operator of oil and gas production vessels for fabrication and integration work on a floating production storage and offloading (FPSO) vessel. The shipyard’s work scope includes the fabrication of several topside modules, the riser balcony, the spread-mooring and the umbilical support structures as well as installation and integration of associated equipment and all topside modules onto the FPSO.

Work is expected to commence in Q3 2019, and delivery is scheduled for 2021.

The second contract is between Keppel FELS and Diamond Offshore for the upgrade of the drilling semisubmersible rig Ocean Onyx. Keppel FELS’ scope of work includes the engineering, fabrication and installation of new pontoons, columns, bracings and a wing deck. The Ocean Onyx was first upgraded in 2012 by Keppel AmFELS, Keppel O&M’s yard in the US, from an old semisubmersible rig.

Scheduled for delivery in 2H 2019, Ocean Onyx will initially be deployed offshore Australia. Diamond Offshore is Keppel FELS’ long-standing customer; the two companies have collaborated on more than 12 projects since 2005.

“Keppel FELS has proven to be a reliable partner for our rig repairs and upgrades over the years and we are pleased to work with them again on the upgrade of Ocean Onyx,” Karl Sellers, Senior Vice President – Technical Services of Diamond Offshore, said.

The above contracts are not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.

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