Keppel Extends Strategy into China

Posted by Michelle Howard
Wednesday, April 09, 2014

Company signs agreement to manage a shipyard in Quanzhou, China.
 


Keppel Offshore & Marine Ltd (Keppel O&M), through its wholly owned subsidiary, FELS Offshore Pte Ltd, has signed a management services agreement with Titan Petrochemicals Group Limited (Titan) - a company in which commodities trading conglomerate Guangdong Zhenrong Energy Co. Ltd. (GDZR) is a major shareholder - and Titan Quanzhou Shipyard Co. Ltd (TQS), to manage the TQS shipyard.
 


TQS, located in Quanzhou in Fujian Province, is one of the largest shipyards in China, occupying a total area of 110ha with 3,600m length of coastline.
 


When completed, TQS will have four ultra-large and wide dry docks, including one of the largest modern-designed docks in China, which will enable it to convert double hull vessels such as Floating Production Storage and Offloading (FPSO) units. Besides ship repair and conversion capabilities, the yard is also able to construct offshore rigs including jackups and semisubmersibles.



Under the agreement which is for a 30-year period, renewable thereafter as mutually agreed, the yard, managed by Keppel O&M, will undertake projects using Keppel's proprietary designs.



TQS is wholly-owned by Titan, which is a provider of logistics, transportation, distribution and marine services for petrochemical products in Asia. This agreement is conditional on the completion of the on-going financial restructuring of Titan and the resumption of the trading of its shares on the Hong Kong Stock Exchange.



Mr Chow Yew Yuen, CEO of Keppel O&M said, "The offshore oil and gas market in China has been growing significantly, and there is increasing demand for high specification rigs and production vessels. At the same time, China is a market which has strong preference for China-made products. Having this yard is an extension of our near market, near customer strategy and enables us to service the Chinese market with our suite of proprietary solutions while meeting its requirement of building in-country. This is further complemented by our other shipyard in China, Keppel Nantong, which undertakes specialised shipbuilding and offshore fabrication.



"With 20 yards around the world, we have the experience in managing existing shipyards and optimising their operations, just as we have done so in Brazil, the Netherlands, USA and the Philippines. Together with the strength of GDZR's extensive connections and experience in China, and our expertise and established track record in the global offshore and marine industry, we are confident that this is a win-win partnership that will enable Keppel and Titan to become a major offshore solutions provider for China."



Mr Zhao Xu Guang, Chairman of Titan added, "We are looking to enhance our presence in the offshore and marine business, and partnering Keppel, the world's leading rig builder, is a significant step in this direction. I am confident that with Keppel managing this yard which has good development potential, we will be able to quickly build up the track record of the shipyard and deliver winning Keppel designs and products to Chinese oil and gas operators. Having studied the market, we believe there are a significant number of potential projects that this yard is capable of undertaking."



Both Keppel and Titan are optimistic about the growth potential of China's offshore and marine industry. China's dependence on oil and gas imports has increased from 43% to 56% in 2012, and is expected to exceed beyond 60% in the next few years. With its oil production on land having reached a plateau of 200 million tonnes annually, China is looking to expand its offshore oil and gas production to meet rising energy demands domestically.



In its 12th five-year plan, China announced plans to more than double its investment in offshore exploration and production (E&P) activities to RMB 300 billion, up from RMB 120 billion in its 11th five-year plan. Offshore oil and gas production is also targeted to double to 100 million tonnes, from 50 million tonnes, annually.



The above agreement is not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year.

 

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Ship Management Says Concerned for Crew After Iran Fires Shots

Rickmers Shipmanagement, the Singapore-based company that has chartered the Maersk Tigris, said Iranian officials fired warning shots at the container ship and boarded it on Tuesday.

Videotel Training Film Wins Media Award

Videotel, the international provider of e-Learning maritime training solutions and a company of KVH Industries, Inc., has received a Golden Reel Award from the

EBDG Remembers James A. Cole

Fishing vessel expert and award-winning author, leaves legacy of excellence   EBDG announced the passing of Jim Cole. Over the span of a half century, Jim distinguished

Shipbuilding

Tank Coating for Navig8 Chem Carriers

Shipowner Navig8 is progressing the application of Interline9001, a advanced cargo tank coating from AkzoNobel’s International marine product range, on a series

New Hires at Great Lakes Towing, Shipyard

The Great Lakes Towing Company & Great Lakes Shipyard announced this week that it has made two new hires. Graham Gajewski has been named naval architect, reporting to Jonathan Leivo,

Reps. Courtney, Wittman Honored for Maritime Leadership

United States Congressmen Joe Courtney (D-Conn.) and Rob Wittman (R-Va.) this week received the Maritime Leadership Award from the Shipbuilders Council of America (SCA),

Ship Repair & Conversion

Reps. Courtney, Wittman Honored for Maritime Leadership

United States Congressmen Joe Courtney (D-Conn.) and Rob Wittman (R-Va.) this week received the Maritime Leadership Award from the Shipbuilders Council of America (SCA),

STX France Shipyard Adds More Automated Welding

A good order book and need for higher capacity in the dock were the basis for STX France to purchase more welding automation for its shipyard’s panel welding.   STX

BV Upgrades RAM Software

To help offshore operators and contractors get more out of their assets and develop projects more cost-effectively, Bureau Veritas has supercharged its reliability,

Offshore

Deadly Fire on Pemex Oil Platform to Cost up to $780m

Losses associated with a deadly explosion on an offshore oil platform owned by Mexican state-run company Pemex will total as much as $780 million, a source close to the discussions said on Tuesday.

Groups Seek US SEC Probe of Shell Arctic Drilling Risk Disclosures

An environmental group and a law clinic petitioned the U.S. Securities and Exchange Commission to investigate whether Royal Dutch Shell has adequately disclosed

De Beers Confirms Kleven Newbuild Contract

Norwegian shipbuilder Kleven announced its contract with De Beers Marine Namibia, part of De Beers Group, for the building of a specialized vessel for deep water mineral exploration,

Finance

Committee to Consider Coast Guard Authorization Bill

The U.S. Committee on Transportation and Infrastructure, chaired by U.S. Rep. Bill Shuster (R-Pa.), will mark up legislation this week that authorizes United States

Med Crude-Urals Stronger in Baltic as Surgut Sells Cargoes

Russian Urals crude price differentials strengthened in the Baltic in a spot tender on Tuesday after loading schedules confirmed scarce export volumes for May.   There

Canada Invests In Port Lambton Rescue Station

Inshore Rescue Boat Station upgraded as part of federal infrastructure commitment   On behalf of the Honorable Gail Shea, Minister of Fisheries and Oceans, Pat Davidson,

Energy

Deadly Fire on Pemex Oil Platform to Cost up to $780m

Losses associated with a deadly explosion on an offshore oil platform owned by Mexican state-run company Pemex will total as much as $780 million, a source close to the discussions said on Tuesday.

Groups Seek US SEC Probe of Shell Arctic Drilling Risk Disclosures

An environmental group and a law clinic petitioned the U.S. Securities and Exchange Commission to investigate whether Royal Dutch Shell has adequately disclosed

Med Crude-Urals Stronger in Baltic as Surgut Sells Cargoes

Russian Urals crude price differentials strengthened in the Baltic in a spot tender on Tuesday after loading schedules confirmed scarce export volumes for May.   There

News

Iran: Revolutionary Guards Seized Ship for Legal Reasons

Naval units from Iran's elite Islamic Revolutionary Guards Corps (IRGC) seized a cargo ship in the Gulf on Tuesday for legal reasons, an IRGC source was quoted as saying by state news agency IRNA.

Deadly Fire on Pemex Oil Platform to Cost up to $780m

Losses associated with a deadly explosion on an offshore oil platform owned by Mexican state-run company Pemex will total as much as $780 million, a source close to the discussions said on Tuesday.

Jeffersonville Port Sets Quarterly Shipping Record

The Port of Indiana-Jeffersonville recorded the highest quarterly shipments in its 30-year history during the first quarter of 2015. Cargo volume exceeded 800,000 tons,

Vessels

Tank Coating for Navig8 Chem Carriers

Shipowner Navig8 is progressing the application of Interline9001, a advanced cargo tank coating from AkzoNobel’s International marine product range, on a series

Iran Detains US Cargo Ship in Gulf -Al Arabiya

Saudi-owned Al Arabiya television said an Iranian "force" seized a U.S. cargo ship after opening fire on it in the Gulf on Tuesday and directed it to the Iranian port of Bandar Abbas.

Damen Launches First of Two Ro-Pax Ferries

Eighty-meter ice class Ro-Pax ferry MV Veteran was recently launched by Damen Shipyards Galaţi in Romania, the builder announced today.   The vessel represents the first of a two-vessel contract,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Pipelines Port Authority Salvage Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2483 sec (4 req/sec)