Keppel O&M lands S$250M contracts from repeat customers

Oil drilling rigs at Cromarty Firth in the U.K. Photo by Ben Wicks on UnsplashOil drilling rigs at Cromarty Firth in the U.K. Photo by Ben Wicks on Unsplash

Keppel Offshore & Marine’s wholly owned subsidiary Keppel Shipyard has won around S$250 million in contracts from repeat customers for the integration of two floating production storage and offloading (FPSO) vessels, Keppel Corp. said in a filing to SGX Friday.

Chor How Jat, managing director for conversions and repairs at Keppel O&M, said the contracts came despite a volatile market, amid signs of improvement in the sector.

The first contract is with BW Group’s subsidiary BW Offshore to integrate a newbuild FPSO, following a letter of award received in November 2021, the filing said. Keppel Shipyard will install and integrate about 43,000 tons of topside modules, deck equipment and the turret mooring system, and provide completion and commissioning support, Keppel said. The hull is due to arrive in Singapore in mid-2023, with delivery expected in the second half of 2024, the filing said.

In addition, Keppel Shipyard signed contracts with Single Buoy Moorings (SBM) and a joint venture between SBM and McDermott for fabrication, installation and integration of topside modules for an FPSO project, the filing said. Work is set to begin in the second half of this year, with the FPSO due to arrive in the first half of 2023, Keppel said, adding delivery was set for the second half of 2024.