Keppel has started construction of a shipyard south of Baku in Azerbaijan following an agreement with the Azerbaijan Investment Company.

Azerbaijan State Oil Company president Rovnag Abdullayev said the corporation has already acquired a 10% stake since February.

Under the agreement, the Singaporean shipping company will be responsible for the construction and operation of the $300-350m shipyard.

Construction of the 60,00dwt shipyard is expected to take three years.