Keppel Shipyard, a subsidiary of Keppel Offshore & Marine (Keppel O&M), is set to deliver a floating production storage and offloading (FPSO) vessel to Armada Kraken, a subsidiary of Malaysia-based offshore energy facilities and services provider Bumi Armada.

Once delivered, the new FPSO, with a lifespan of 25 years without dry-docking, will be used to produce the heavy oil found in the Kraken field, in the UK sector of the North Sea.

Keppel O&M marine and technology managing director Michael Chia said: "The Armada Kraken project has further strengthened our track record in converting sophisticated FPSOs that are designed to operate under harsh-environment conditions.

"The Armada Kraken project has further strengthened our track record in converting sophisticated FPSOs."

“With Armada Kraken, Keppel and Bumi Armada would have completed our 15th conversion / upgrading project together."

Under the deal with Armada Kraken, Keppel Shipyard will provide renovation and life extension works, installation of an internal turret mooring system, as well as installation and integration of topside process modules.

Keppel Shipyard will also improve Armada Kraken’s living quarters, which will be able to accommodate 90 personnel.

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Bumi Armada CEO Leon Harland said: "Armada Kraken marks Bumi Armada's entry into the North Sea and it underscores our commitment to deliver a high quality bespoke FPSO, that is designed to meet the challenges posed by the North Sea's harsh environment using proven technology, and incorporates a number of unique features to ensure a safe, reliable and economical operation.

“The FPSO is built in compliance with the strict regulatory guidelines as defined by the UK Health and Safety Executive and Department of Energy and Climate Change regulations and is classed by DNV GL."

Currently, Armada Kraken can handle a peak fluid rate of 460,000 barrels per day and 80,000 barrels of oil per day.

With a storage capacity of 600,000 barrels, it is also capable of handling 75,000 barrels per day of water injection, and 20 million standard cubic feet of gas.