Keppel inks conversion and newbuilding contracts

Keppel Offshore & Marine Limited (Keppel O&M) has secured contracts worth a total of $132 million to carry out the conversion of two floating production storage and offloading (FPSO) facilities and the construction of five Anchor Handling Tug/Supply vessels.

The conversion contracts were clinched by Keppel Shipyard from regular customers, Monaco-based Single Buoy Moorings (SBM) and Frontline FPSO Ltd (Frontline), a new business unit of Frontline Ltd. of Bermuda.

Keppel will convert for SBM the 310,000 dwt VLCC Litiopa into a FPSO, FPSO Saxi, which will have oil production capacity of 100,000 barrels of oil per day and storage close to two million barrels of oil. When completed in early 2008, the vessel will be leased to ExxonMobil for the Kizomba C Development, offshore Angola in West Africa.

This is Keppel Shipyard?s ninth similar project for SBM since 2000. Its last project from same owner is the FPSO Mondo which was secured in June and will be leased to ExxonMobil. SBM is one of the world?s largest operators of FPSOs and FSOs.

Keppel Shipyard will also carry out the conversion of a 112,000 dwt shuttle tanker, Front Puffin, into a FPSO facility for Frontline. Upon delivery, Front Puffin will be able to produce up to 40,000 barrels of oil per day and store up to 720,000 barrels of oil. It will be leased to AED Oil Ltd for the Puffin Field, Bonaparte Basin in North Western Australia.

Another wholly owned subsidiary of Keppel O&M, Keppel Singmarine Pte Ltd has secured five 62-metre AHTS vessels from first time customer, Whitesea Shipping & Supply LLC (WSS). The vessels will be constructed in Keppel Nantong Shipyard, bringing the total number of vessels being built by the Chinese yard to 13 units. Deliveries for these vessels are scheduled between 2008 and early 2009 for operation in the Middle East.

Based in the United Arab Emirates (UAE), WSS is a regular customer of Arab Heavy Industries (AHI), an associate of Keppel O&M, which services WSS?s fleet of offshore support vessels.