Keppel Secures Conversion Contracts Worth $56.6M

Monday, March 24, 2003
Keppel Shipyard has secured two conversion contracts totaling about $56.6 million. The first contract is for a fast-track conversion of FPSO Marlim Sul from repeat customer Single Buoy Moorings Inc (SBM). Keppel Shipyard has completed four similar fast track projects for SBM since 2000. These projects include FPSO Espadarte, Yetagun FSO, FPSO Falcon, and FPSO Brasil. Work is currently in progress within schedule for FPSO Serpentina, which is due for delivery in April 2003. Tong Chong Heong, managing director and chief operating officer of Keppel Offshore & Marine Ltd (Keppel O&M) said, “Fast track projects are very challenging both for the owners and the shipyard especially in ensuring that a high standard of work is achieved without compromising safety and cost management. “I am glad that since the integration of Keppel Shipyard under Keppel O&M, we have been able to execute such projects even more efficiently. Our safety practices have also improved tremendously in the implementation of yard-wide total safety programme in partnership with SBM.” Keppel Shipyard has achieved Accident Frequency Rate (FR) of 0.96 and 0.88 accidents per million man-hours of working for FPSO Falcon and FPSO Brasil against Marine Industry’s FR of 3.2 for year 2002. Overall, Keppel Shipyard has achieved Accident Frequency Rate of 1.72 for year 2002, which is 46.25% lower than the Marine Industry’s average. Added Dick van der Zee, COO of SBM, “Fast track projects require engineering, fabrication and assembly works to be carried out in parallel and little room for errors is allowed. Expertise and flexibility on the part of the shipyard is absolutely necessary. Keppel Shipyard has demonstrated time and again what it takes to perform such demanding work. The 270,000dwt FPSO Marlim Sul is scheduled to arrive in Keppel Shipyard in March/April 2003. The work is expected to be completed in 11 months, after which it will be leased for nearly eight years to Petrobras to be deployed in the Marlim Sul field off Brazil. The second contract is for the upgrading of a trailing suction hopper dredger, Vasco da Gama, owned by Belgium's Jan de Nul. Work on her involves modification of the ship structure for a deep dredging system that is able to dredge up to 135m deep, installation of suction pipe inlet (130 tons new steel), installation of trunnion gantry/service frame, pump cradle/winch/gantry, 135m/80m suction pipe assembly and inboard dredging pipe/jet pipe and electrical and hydraulic system.

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