Keppel Offshore & Marine Ltd (Keppel O&M) has been awarded contracts worth around $54.5 million for the refurbishment and completion of two floating production units (FPU).
More precisely, the contracts were awarded to Keppel O&M’s wholly-owned subsidiaries – Keppel AmFELS, and Keppel Shipyard.
The first contract was won by Keppel AmFELS with Salamanca FPS Infra for the refurbishment of a floating production unit to be operated by LLOG Exploration Offshore a private exploration and production company in the U.S.
Keppel AmFELS’ scope of work on the production facility includes demolition, hull modifications, and upgrades to key systems. Expected to be completed in the second quarter of 2024, the Salamanca FPU will have a capacity of 60,000 barrels of oil per day and 40 million cubic feet of natural gas per day. It will be deployed in the deep waters of the Gulf of Mexico to service the Leon field and the Castile field.
As the Salamanca FPU is being upgraded and modified from a previously decommissioned production facility, the time, cost, and materials to be used are greatly reduced compared with the construction of a new facility. The project has a positive environmental, social, and governance impact as it would reduce approximately 70 percent in carbon emissions compared to a new build and circumvents the scrapping of an old unit.
The second contract is between Keppel Shipyard and Modec Offshore Production Systems to support the completion of an FPSO. Keppel Shipyard’s scope of work is to complete the topsides integration work as well as support the pre-commissioning and commissioning activities for the FPSO. The vessel is expected to arrive at its Singapore yard in the fourth quarter of 2022.
When completed, the FPSO will be able to process 100,000 barrels of oil per day and will be delivered to Woodside to work on the Sangomar field’s Development Phase 1. The FPSO will be moored in waters approximately 2,560 feet and will be located approximately 60 miles south of Dakar, Senegal.
“We are pleased that customers around the world come to us for the upgrade, modification, and completion projects, which attests to our strong execution capabilities and versatility in undertaking a variety of projects as well as providing value-added services. Such projects also underscore our expertise in advancing the circular economy through repurposing or rejuvenating existing vessels and renewing their lifespans. As the demand for energy increases and the market improves, we are committed to supporting the energy transition through our innovative solutions,” Chris Ong, CEO of Keppel O&M, said.
The above contracts are not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year.
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