Keppel Corp has secured two floating production, storage and offloading vessel-related contracts from Japanese floater specialist Modec worth SGD 73m ($52.5m), the company confirmed.
The first deal will see its Singapore yards fabricate, complete and integrate the topside modules and mooring support structure for an unnamed FPSO.
Components for the work are due to arrive at the Tuas-based yard in the third quarter of this year with completion of the work expected before the year's end.
The FPSO will be equipped to process 90,000 barrels of oil and 75m cubic feet of gas per day and with a storage capacity of 700,000 barrels of oil, Keppel said.
In Brazil, Keppel’s BrasFELS yard will fabricate a topside module for an FPSO for the Buzios field in the Santos Basin, off the coast of Rio de Janeiro.
Work on the FPSO, to be named FPSO Almirante Barroso MV32, is due to start in the autumn at the yard in Angra dos Reis, with delivery scheduled for late next year.
'Solid track record'
“We have built a solid track record of 11 projects completed with the Modec group of companies over the years, which include FPSO conversions, module fabrication and integration works, as well as turret projects,” Keppel Offshore & Marine chief executive Chris Ong said.
“Against the backdrop of Covid-19, Keppel has implemented enhanced measures to ensure the safety of our staff and customers, while leveraging technology and innovation to ensure that our operations can continue in a safe and efficient manner.”
Anthony Quinn, president of Modec Offshore Production Systems (Singapore), said: “We have confidence in Keppel’s track record and ability to deliver in spite of the current challenging environment, as we continue to support Brazil’s significant oil and gas industry.
“While low oil prices amid a global pandemic marks a difficult time for the industry, we are confident there is continued demand for energy in the long-term as the global economy gears up for recovery.”
Earlier this month analysts warned that order flow at Singapore’s offshore-related shipyards would face a drought until the middle of next year.
“The industry outlook remains challenging … and chances of a recovery in the offshore and marine sector in the near term remain low in our view,” Adrian Loh, shipbuilding analyst at UOB Kay Hian, said.
The full extent of Keppel's performance is due to be disclosed at the end of the month when it reports its second-quarter results.
