New shipyard in Azerbaijan to be run by Keppel

The yard is jointly owned and developed by Keppel Offshore & Marine, State Oil Company of Azerbaijan Republic (SOCAR) and Azerbaijan Investment Company (AIC). It was opened by the President of Azerbaijan, H.E. Ilham Aliyev.

The new yard is intended to build a range of specialised vessels including subsea vessels, AHTS and multi-purpose offshore support vessels such as PSVs, as well as tankers and cargo vessels. It includes repair and conversion capabilities. Although Keppel O&M owns just 10% of the yard, it has full responsibility for management and operation. The largest shareholder, at 65%, is SOCAR.

According to Keppel, phase 1 of the new yard cost about $470 million to build, and when operating at full capacity, it will be able to undertake up to 100 repairs and conversions per annum and is estimated to achieve an average annual steel output of 25,000t. Plans for the second phase include the construction of a graving dock with added facilities for offshore projects. It has already received an order for an AHTS vessel, and is involved in construction of semi-submersible pontoons.

Tong Chong Heong, CEO of Keppel O&M, said, “The inauguration of Baku Shipyard signals the opening of a new and additional chapter in the long-standing partnership between SOCAR and Keppel O&M. Our participation in the yard demonstrates our commitment to be a long-term solutions provider for Azerbaijan.”

Keppel already operates a yard in Azerbaijan, the Caspian Shipyard Company (CSC), which is another joint venture between Keppel O&M and SOCAR. The CSC and Baku yards will work closely together.

Following the inauguration of the Baku Shipyard, the President of Azerbaijan named a new floating drydock at the yard. He also officiated at a strike steel ceremony a the semisubmersible drilling rig that is being built by CSC for a subsidiary of SOCAR, Caspian Drilling Company.