SINGAPORE (THE BUSINESS TIMES) - Keppel Corporation on Tuesday (Sept 22) said its offshore and marine arm Keppel Offshore & Marine (Keppel O&M) has clinched two contracts worth about $200 million combined - one in the US and the other in Singapore.
Both projects are on progressive payment terms. They also represent Keppel's ninth newbuild dredger and fifth floating storage and regasification unit (FSRU) conversion, the conglomerate said in a press statement.
In the United States, Keppel O&M's wholly owned subsidiary Keppel AmFELS will construct a high-specification trailing suction hopper dredger (TSHD) for Manson Construction, an employee-owned marine contractor based in Seattle.
The TSHD will be the first dredger built at Keppel AmFELS' yard in Brownsville, Texas. When completed, it will measure 420 ft long with a breadth of 81 ft and draft of 28.5 ft, have a hopper capacity of 15,000 cubic yards and will operate primarily in the Gulf Coast and Atlantic Coast of the US.
Keppel O&M chief executive Chris Ong said: "This is an exciting first newbuild project for Keppel O&M with Manson Construction Co and we will be building the largest US hopper dredger."
To date, Keppel O&M has delivered four dredgers and is building another four.
In Singapore, Keppel Shipyard - another Keppel O&M wholly owned subsidiary - is undertaking the conversion of a liquefied natural gas (LNG) carrier to an FSRU bound for the Port of Acajutla, El Salvador. The FSRU will be El Salvador's first integrated LNG-to-power project.
The contract was inked with FSRU Development, a joint-venture company between BW Gas Limited and Invenergy Investment Company. BW Gas manages the LNG shipping and gas solutions business of global maritime group BW Group, while Invenergy is a global developer and operator of sustainable energy solutions.
"Keppel O&M's partnership with the BW Group has grown from strength to strength, having worked together on more than 10 projects, including floating production storage and offloading and FSRU conversions," Mr Ong said.
He added that amid the challenges of dealing with Covid-19, measures have been put in place across all operations - whether in Singapore or the US - to ensure work is conducted in a responsible and efficient manner so the vessels can be delivered safely, on time and within budget.
Keppel O&M converted the world's first FSRU in 2008 and previously delivered the world's first floating liquefaction vessel, the statement said. It is working on a second floating liquefaction vessel, as well as Singapore's first LNG bunkering vessel.
Keppel Corporation said the contracts are not expected to have a material impact on its net tangible assets or earnings per share for the current financial year.
The counter closed at $4.19 on Monday, down nine cents or 2.1 per cent.
