Singapore’s Keppel Offshore & Marine, through its subsidiary Keppel Shipyard, has secured contracts worth about Singapore $ 250 million (~ $ 180.4 million) for the integration of two floating storage and unloading production vessels (FPSOs).
Keppel Offshore & Marine, which is set to merge with Semcorp Marine, said on Friday that the FPSO integration contracts were awarded by recurring customers, BW Offshore and SBM Offshore.
The first contract was between Keppel Shipyard and BW Offshore for the integration work of the newly built FPSO. The contract follows the award letter Keppel received from BW Offshore, as announced by Keppel on November 25, 2021.
Keppel Shipyard will be responsible for the installation and integration of approximately 43,000 tonnes of top modules, deck equipment and dome mooring system, as well as maintenance for the completion and commissioning of BW Offshore. The FPSO corps is expected to arrive in Singapore in mid-2023, with delivery scheduled for the second half of 2024.
Keppel Shipyard has also signed contracts with Single Buoy Moorings, Inc. (SBM) and a joint venture between SBM Offshore and McDermott to manufacture, install and integrate the top modules for the FPSO project.
The yard will also support SBM with pre-commissioning and commissioning works. Work is expected to begin in the second half of 2022 before the FPSO hull arrives at the yard in the first half of 2023, with delivery scheduled for the second half of 2024.
Chor Kak Yat, Managing Director (Conversion and Repairs), Keppel O&M, said: “Despite the volatile market, we are pleased to receive contracts from our long-standing customers, as it is a testament to the partnerships we have built over decades of cooperation. We see signs of fundamental improvement in the market and we are in a good position to work with customers to provide innovative, reliable, quality and value-added solutions.
Although Keppel has not shared details about the FPSO that will be integrated, it is likely that it will be worked on as part of the SBM Offshore-McDermott contract.is FPSO ‘ONE Guyana’, designed for implementation in the development of ExxonMobil Yellowtail in the offshore Stabroek Block of Guyana.
ONE Guyana will be the fourth and largest FPSO to be located in the Guyana Sea.
The FPSO will be designed to produce 250,000 barrels of oil per day, will have a connected gas processing capacity of 450 million cubic feet per day and a water injection capacity of 300,000 barrels per day.
The FPSO will be anchored at a water depth of about 1,800 meters and will be able to store about 2 million barrels of crude oil. SBM Offshore in April confirmed the award of FPSO’s contract to ExxonMobil and said the turnkey phase of the project would be implemented by a special purpose vehicle (SPC) set up by SBM Offshore and McDermott.
SBM Offshore owns 70% and McDermott owns 30% of this SPC.
As for the BW Offshore contract, the deal is probably related to the Barossa FPSO that BW Offshore is building for deployment at the Barossa deposit in Santos, Australia. BW Offshore’s quarterly presentation in February showed that the company had entered into an LOA with Keppel Shipyard as an integrative shipyard for the Barossa project. The above modules will be supplied by Dyna-Mac.
The FPSO will have a processing capacity of up to 800 million standard cubic feet per day (MMSCFD) gas and a design capacity of 11,000 barrels per day of stabilized condensate. FPSO will be moored with a newly built hull based on BW Offshore’s RapidFramework design. The initial gas production from the FPSO is expected in the first half of 2025.
BW Offshore has a lease and operation agreement with Santos, with a fixed term of 15 years and 10 years of options. The value of the fixed-term contract is 4.6 billion dollars. The FPSO hull will be built in South Korea, then equipped with tops in Singapore before being hauled and permanently located in the field, where it will process natural gas before being transported by pipeline to Darwin LNG. The condensate will be stored at the FPSO for periodic unloading.