Keppel obtains marine contracts of around S$300 million

Keppel Offshore & Marine obtained contracts valued at around S$300 million to design and build an ice-class LNG bunker vessel, refurbish a floating production storage and offloading vessel (FPSO) and 65 scrubber retrofit projects, Keppel said in a filing to SGX on Wednesday.

The first contract is via Keppel Singmarine, a wholly owned subsidiary of Keppel Offshore & Marine, from Shturman Koshelev for the ice-class LNG bunker vessel, which is expected to be completed in the fourth quarter of 2020, it said in a filing to SGX before the market open on Wednesday.

The vessel will be chartered to Gazpromneft Marine Bunker for operations in the Baltic Sea, and the deal complies with applicable sanctions, Keppel said.

The second contract is via Keppel Shipyard, which is a wholly owned subsidiary of Keppel Offshore & Marine, from a leading global operator of floating production vessels to fabricate a new aft hull for an FPSO, the filing said.

The FPSO has already arrived at the shipyard and work is scheduled to begin in the first quarter of 2019, with delivery expected by the end of 2020, Keppel said.

In addition, Keppel Shipyard has obtained 65 contracts recently from “a variety of customers” for exhaust gas scrubber retrofit projects, related to the International Maritime Organisation’s 0.5 percent global sulphur cap on marine fuel starting from January 2020, it said.

The company completed the first scrubber retrofit installation in Singapore in July, on a Very Large Crude Carrier (VLCC), in a project that was delivered in less than 30 days, it said.

Keppel Shipyard is able to quickly turnaround scrubber retrofit projects via the use of 3D scanning and fitting the scrubber and supporting systems in one prefabricated module before the vessel enters the yard, it said.

Get the Shenton Wire morning briefing in your inbox