Keppel O&M secures two contracts

Keppel Offshore & Marine (Keppel O&M) has won two contracts in the U.S. and Singapore worth S$200 million combined.

The deals were signed with Keppel’s wholly-owned subsidiaries, Keppel AmFELS and Keppel Shipyard.

In the United States, Keppel AmFELS will be constructing a high-specification Trailing Suction Hopper Dredger (TSHD) for Manson Construction Co. The TSHD will be the first dredger built at Keppel AmFELS’ yard in Brownsville, Texas.

When completed, the dredger will have a hopper capacity of 15,000 cubic yards and will operate primarily in the Gulf Coast and Atlantic Coast of the United States.

John Holmes, Manson Construction Co. president, said, “We are pleased to be partnering with Keppel AmFELS, due to their impressive vessel construction capabilities. Their value proposition is strengthened by our shared focus on safety. We are confident they will provide us an efficient, environmentally-friendly and high quality dredge that exceeds the stringent environmental restrictions and regulations for dredges in the US.”

In Singapore, Keppel Shipyard is undertaking the conversion of a Liquefied Natural Gas (LNG) carrier to a Floating Storage and Regasification Unit (FSRU) bound for the Port of Acajutla, El Salvador. The contract was inked with FSRU Development Pte Ltd, a joint venture company between BW Gas Limited (BW LNG) and Invenergy Investment Company LLC (Invenergy). The FSRU will be El Salvador’s first integrated LNG-to-power project.

Chris Ong, CEO of Keppel O&M, said, “This is an exciting first newbuild project for Keppel O&M with Manson Construction Co and we will be building the largest U.S. hopper dredger. We look forward to supporting Manson Construction Co as they grow their fleet of vessels. Keppel O&M’s partnership with the BW Group has grown from strength to strength, having worked together on more than 10 projects, including FPSO and FSRU conversions. This demonstrates our close collaboration and BW Group’s confidence and trust in our capabilities.”

The projects represent Keppel’s ninth newbuild dredger and fifth FSRU conversion. Both projects are on progressive payment terms.