Singapore: Keppel Bags Three Conversion Contracts

Keppel Shipyard Ltd (Keppel Shipyard) has secured three conversion contracts with an initial combined value of S$103 million. The contracts are from PTSC Asia Pacific Pte Ltd (PTSC Asia Pacific), Perenco Group (Perenco) and BC Petroleum Sdn Bhd (BC Petroleum).

The contract from PTSC Asia Pacific, which is a joint venture between PetroVietnam Technical Services Corporation (PTSC) and Yinson Holdings Berhad (Yinson), is to convert a tanker to a Floating Production Storage and Offloading (FPSO) unit.

The second contract is from Perenco to convert a tanker to a Floating Storage and Offloading (FSO) unit.

The third contract is from BC Petroleum for the modification and upgrading of a tanker to an Early Production Vessel, EPV Balai Mutiara.

Mr Nelson Yeo, Managing Director of Keppel Shipyard, shared, “We thank PTSC Asia Pacific, Perenco and BC Petroleum for their confidence in our capabilities and entrusting us with these projects. Working closely with our customers, we will continue to enhance and extend our capabilities, and ensure safe and quality deliveries.”

Keppel Shipyard’s work on the FPSO for PTSC Asia Pacific will commence in 3Q 2012 and is scheduled to complete in 3Q 2013. When delivered, the FPSO will be deployed in the Thang Long and Dong Do oil fields which are located in the Cuu Long Basin, offshore Vietnam. The FPSO will be capable of producing 15,000-20,000 barrels of oil per day (bopd) and has a storage capacity of up to 650,000 barrels of oil.

Keppel Shipyard’s work scope for this FPSO project includes refurbishment and life extension works; fabrication and installation of the flare tower, helideck, pipe racks and power generation module; installation and integration of topside process modules and external turret; and upgrading the accommodation facilities.

Over the years, Keppel Shipyard has delivered seven FPSO and FSO projects to Vietnam. Two of these projects, Armada TGT 1 and FPSO Lewek EMAS, were delivered in 2011.

For the contract with Perenco, Keppel Shipyard’s work scope includes refurbishment and life extension works, accommodation upgrading, installation of new machinery, mooring structures and helideck as well as tank coating works.

Works will commence in 3Q 2012 and are scheduled to complete in 1Q 2013. The converted unit will be named FSO Mayumba, and it will be stationed in the Lucina field, offshore Gabon.

On the contract from BC Petroleum, the scope of work for Keppel Shipyard includes refurbishment and life extension works; fabrication and installation of flare tower and helideck; integration and modification of process module and the upgrading of the accommodation facilities. When completed, EPV Balai Mutiara will be deployed in the Balai Cluster oil fields, offshore Malaysia.

The above contracts are not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.