Keppel Shipyard Reports Acquiring Additional FPSO Contract

By Finance

Keppel Shipyard Ltd, which is a wholly owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has managed to secure a Floating Production Storage and Offloading (FPSO) conversion contract along with three repair, upgrade and modification contract deals with a total worth of approximately S$ 125 million (USD 89.36 million).

The Keppel Shipyard FPSO conversion project is going to serve the purposes of Armada Madura EPC Limited, which is a joint venture established between Shapoorji Pallonji Group and Bumi Armada Berhad.

Keppel O&M, Marine & Technology, Managing Director, Michael Chia, has commented that the conversion project at hand serves as the third one conducted by the yard for the said joint venture.

“We have full confidence that this FPSO is going to be as successful as the first two ones, Armada Sterling and Armada Sterling II, which have demonstrated perfect results in the Cluster 7 and D1 fields. This operation will also mark our 13th conversion/upgrading project carried out for Bumi Armada,” he said.

Chia notes the fact that when regarding deepwater production FPSOs are the preferred product and that the company is pleased that its FPSOs have performed up to par and were able to comply with the needs of its clients.

“We are going to continue working with our partners in providing more cost-efficient and value-added solutions in order to meet any of their needs,” he added.

The FPSO conversion at hand has already been initiated, as it should be finished by Q3 of 2016 if all goes according to schedule. When completed, the FPSO is going to serve the Madura Strait Block BD which is 65 km east off Surabaya and roughly 16 km south off Madura Island, Indonesia.

Take a closer look at the highlights of FPSO Armada Sterling conversions: