Keppel Offshore & Marine’s (O&M) two subsidiaries have received contracts worth SGD368m ($295m) from Armada Kraken and Baku Shipyard.

Under the first contract, Keppel Shipyard will convert Armada’s floating production storage and offloading (FPSO) vessel.

The FPSO will be capable of producing the heavy-oil (API degree 14) in the Kraken field, the UK sector of the North Sea, over a period of 25 years.

As part of the FPSO project, the company will carry-out refurbishment and life extension works, upgrade living quarters to accommodate 90 personnel, install an internal turret mooring system and deploy and integrate topside process modules.

"We are seeing an increasing demand for more sophisticated FPSOs which can operate in harsher environments."

Keppel O&M Marine & Technology managing director Michael Chia said: "We are seeing an increasing demand for more sophisticated FPSOs which can operate in harsher environments, more challenging and deeper oil and gas fields."

"Keppel Shipyard, with its strong and established delivery track record of over 110 conversion projects to-date, is well-positioned to capture the growing FPSO opportunities and serve the evolving needs of this market."

Work on the project has already started and the vessel is scheduled for delivery in the third quarter of 2015.

The second contract awarded to Keppel Singmarine involves design, fabrication and outfitting works for a subsea construction vessel (SCV).

The SCV will be designed by the company’s marine technology development division and will be deployed for the stage two development of the Shah Deniz field in the Caspian Sea.

The vessel will feature a dynamic positioning system, a 750t heave compensated crane that allows for subsea operations of 600m deep, an 18-men two-bell diving system and two work-class remotely operated vehicles.