Keppel Shipyard gets contract to convert FPSO for Madura Strait PSC
Wednesday, August 12 2015 - 12:44 AM WIB
Singaporean firm Keppel Offshore & Marine Ltd (Keppel O&M) announced on Tuesday that its wholly owned subsidiary Keppel Shipyard Ltd (Keppel Shipyard) has secured a Floating Production Storage and Offloading (FPSO) conversion contract as well as three repair, upgrade and modification contracts worth a total of about S$125 million.
The FPSO conversion project Keppel Shipyard will be undertaking is for Armada Madura EPC Limited, a joint venture between long-standing customer Bumi Armada Berhad (Bumi Armada) and Shapoorji Pallonji Group (Shapoorji Pallonji).
Michael Chia, Managing Director (Marine & Technology), Keppel O&M, said, "FPSOs continue to be the preferred product for deepwater production and we are pleased that our customised FPSOs have proven to be efficient solutions for our customers. We will continue to work with our partners to provide more value-added and cost-efficient solutions to meet their needs."
Work on the FPSO conversion, which has commenced, is scheduled to complete in 3Q 2016. Upon completion, the FPSO will produce for the Madura Strait Block, which is located 65km east of Surabaya and about 16km south of Madura Island.
Last December, Malaysia-based international offshore oilfield services provider Bumi Armada announced that it had signed a contract to supply a FPSO vessel for the Madura BD gas field in the Madura Straits block, offshore East Java, operated by Husky-CNOOC Madura Limited (HCML).
The company said the contract is for a firm charter period of ten years with options of five annual extensions. The estimated aggregate value of the contract is approximately US$1.18 billion (equivalent to approximately RM3.98 billion).
The FPSO is expected to commence operations in the Madura BD Field in the fourth quarter of 2016.
Editing by Johannes Simbolon