Jurong Wins $80M FPSO Conversion From Kellog Brown & Root

SembCorp Marine Ltd. said its wholly-owned subsidiary Jurong Shipyard Pte Ltd. won a project worth about $80 million from U.S.-based Kellog Brown & Root Inc. to convert a crude oil tanker into an oil platform. The project, which involves the conversion of a 270,000 dwt crude carrier to a floating production, storage and offloading platform to be stationed offshore from Brazil. After the project's completion in the third quarter of 2002, the platform will have the capacity to produce 150,000 barrels a day of oil as well as gas compression capacity. Jurong Shipyard is also investing $8.8 million for a 70 percent stake in a Brazilian joint venture for conversion and construction of floating production and drilling units for deep water oil and gas exploration and production. The Maua Group will hold the remaining 30 percent stake in the venture, it said. SembCorp said Jurong Shipyard will be using internal funds for the investment and it is thus not expected to have a material impact on its earnings. - (Reuters)