Keppel receives four vessel conversion and repair contracts worth $61m


Keppel Offshore & Marine (Keppel O&M) has secured four contracts valued at nearly S$85m ($61m) via its wholly owned subsidiary Keppel Shipyard, which involve the conversion, repair and modification of vessels.

Keppel Shipyard managing director Chor How Jat said: “Despite the current challenging market conditions, we continue to receive a regular stream of conversion, repair and modification work from both new and long-standing clients.

“There remain opportunities in a variety of segments in the offshore and marine market, and we are proud to be the industry's preferred shipyard.

“These four contracts bear testament to our strong expertise in the conversion, upgrading and repair works for floating production storage and offloading (FPSO) vessels, LNG tankers, as well as heavy lift vessels.”

The company will convert M / T Tempera into an FPSO under the first contract with Dixstone Holdings. The work will see the installation of topside process skids and a new accommodation module, amongst others.

Keppel Shipyard is expected to commence the work in the third quarter of this year.

The FPSO will be deployed at the Yombo field operated by Perenco off the Republic of Congo, replacing the FPSO Conkouati following delivery, which is expected to take place in the third quarter of 2018.

"Despite the current challenging market conditions, we continue to receive a regular stream of conversion, repair and modification work from both new and long-standing clients."

The second contract requires Keppel Shipyard to carry out repair work for the life extension and conversion of an oil tanker into an FPSO MTC Ledang for MTC Engineering.

Work under the deal is expected to be completed by the third quarter of this year, and the FPSO will then be deployed to the Ophir Field, offshore Peninsular Malaysia.

Royal Boskalis Westminster awarded Keppel Shipyard the contract to convert its Finesse semi-submersible heavy-lift vessel into to a crane vessel.

The conversion is currently scheduled to be completed by the third quarter of 2017. 

Finesse will be equipped with a 3,000t crane and dynamic positioning (DP2) capabilities, and will be able to accommodate up to 150 people.

Keppel Shipyard will conduct major refurbishment for EXMAR Ship Management's gas carrier known as LNG Lerici under the fourth contract.

The contracted refurbishment works have already started, and are expected to be finished in the first quarter of next year.