Keppel Secures $130 mln in Projects

Keppel Offshore & Marine (Keppel O&M) has, through its wholly-owned subsidiaries, Keppel FELS Brasil S.A. and Keppel Shipyard Ltd (Keppel Shipyard), secured projects from repeat customers, Petrobras and SOFEC Inc. (SOFEC) respectively, worth a combined value of approximately S$130 million.

Keppel FELS Brasil's BrasFELS shipyard has secured hull carry over work for the Floating Production Storage and Offloading (FPSO) unit P-69 from Tupi BV (a consortium formed by Petrobras Netherlands B.V., operator with 65%; Shell with 25%; and Petrogal Brasil with 10%), which is represented by Petrobras.

The additional work scope on P-69 includes the installation of equipment and cables for the hull as well as the commissioning of marine systems.

BrasFELS was initially contracted to undertake the fabrication, integration, testing and commissioning of the topside modules for P-69. The yard has since completed module fabrication for P-69, and is currently undertaking integration and commissioning of the topside modules.

P-69 is scheduled to depart BrasFELS in 2018 for the Santos Basin pre-salt region. When delivered, it will have a production capacity of 150,000 barrels of oil per day (bopd) and 6 million cubic meters of gas per day. It will also have a storage capacity of 1.6 million barrels of oil.

Keppel Shipyard's contract from SOFEC is for the fabrication of a Turret Mooring system for a newbuild Floating Liquefied Natural Gas (FLNG) vessel bound for the Coral South FLNG Project in offshore Mozambique. Fabrication is scheduled to commence in 1Q 2018 with delivery of the turret components expected in 1Q 2020.

The above contracts are not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.