Sembawang Wins Historic FPSO Conversion Contract

Wednesday, January 04, 2006
Sembawang Shipyard won $53.5 million contract from Bergesen Worldwide Offshore to convert the Ultra Large Crude Carrier, BW Enterprise to an FPSO (Floating, Production, Storage & Offloading). Bergesen Worldwide Offshore will own and operate the FPSO in the Gulf of Mexico under a 15-year term agreement with Pemex. This is the first FPSO to be deployed in the Gulf of Mexico and will serve as a hub in the area and act as an export terminal.

The contract calls for the 360,000 dwt tanker to be converted into an FPSO with 600,000 bpd handling inclusive of 200,000 bpd processing capacity with gas export capability. The shipyard will carry out detailed engineering, procurement of bulk materials, vessel’s repair and conversion, installation of topside modules and the internal turret as well as pre-commissioning work. Major conversion and upgrading work include the coating of all tanks slop and ballast tanks, installation of various systems and equipment such as a new and modified cargo system, submerged pumps in tanks and a new ring main fire water system. The accommodation will also be upgraded and refurbished to house 110 persons. The shipyard will install all the pre-assembled topside modules including the process plant with capacity of 200,000 bpd oil, gas compression module with capacity of 120 MMSCFD and a flare system. Upon completion, the FPSO will have the third largest oil production capacity of the existing FPSO units in the world as well as having the largest throughput of oil of any FPSO unit.

The vessel is scheduled for delivery in the fourth quarter of 2006. On completion, the facility will be stationed at the Ku- Maloob-Zaap field in Mexico's Bay of Campeche, located 105 km north-west of Ciudad del Carmen. “As part of the project strategy, Sembawang Shipyard was selected by Bergesen Worldwide Offshore to be our partner shipyard during the challenging tender process,” said Svein Moxnes Harfjeld, CEO of Bergesen Worldwide Offshore. “The shipyard has demonstrated its ability to work in tandem with us right from the project’s initial phase, showing dedication and commitment to resolve challenges as a team. We are confident that this partnership will be the blueprint of a successful conversion project and we thank the shipyard for their enthusiastic and spirited effort thus far. Besides being a large and complex conversion, it is a fast track project.

The way ahead will be challenging and both partners are committed to make this project yet another FPSO delivered on time from Bergesen.”

“We are honored to have been chosen by Bergesen Worldwide Offshore for this major conversion,” said Ong Poh Kwee, Managing Director of Sembawang Shipyard. “Particularly as on-time delivery is a priority, this fast track project will require our project team to demonstrate strong commitment to meet deadlines, innovative engineering solutions to ensure that the latest technologies are deployed and most importantly, having the right mindset to work with Owners in achieving the project’s main goal, that is, producing a Facility with the largest throughput of oil. We thank Owners for their trust and confidence in our project management know-how, design, engineering, outfitting and commissioning capabilities."

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