In Brazil, the BrasFELS shipyard a Keppel FELS Brasil Ltda (Keppel FELS Brasil) was contracted TODAY, JULY 22, 2018 by its longtime customer, MODEC Offshore Production Systems (Singapore) Pte Ltd., part of the MODEC, Inc group. (collectively “MODEC”), to undertake the fabrication of the topside module and the integration of the FPSO Carioca MV30, a Floating Production Storage and Offloading (FPSO) vessel. This is the sixth FPSO collaboration between Keppel FELS Brasil and MODEC.
In Singapore, Keppel Shipyard Ltd (Keppel Shipyard) was tasked with the conversion of an LNG carrier into a Floating Storage and Re-gasification Unit (FSRU) by a leading global operator of oil and gas production vessels.
Chris Ong, CEO of Keppel O&M, said: “Keppel O&M has a strong track record in production, storage, gasification or liquefaction vessels, having successfully delivered over 130 such units over the years.
“The FPSO Carioca MV30 is our 11th FPSO project for Brazil and, as the most established shipyard in Brazil, BrasFELS is well positioned to hand it over to Keppel O&M's executive excellence. , this is our fourth FSRU conversion contract and is part of our comprehensive suite of solutions for the gas value chain.”
The BrasFELS shipyard, a unit of Keppel FELS Brasil in Angra dos Reis, Rio de Janeiro, Brazil, will start manufacturing the FPSO modules in 4Q 2018. When completed, the FPSO Carioca MV30 will have the capacity to process 180,000 barrels of crude oil per day (bpd) and 212 million cubic meters of gas per day. The unit's storage capacity is 1.4 million barrels of crude oil. The FPSO will be deployed in the Sepia field, located in the pre-salt region of the Santos Basin, approximately 250 kilometers off the coast of Rio de Janeiro, Brazil.
Mr. Sateesh Dev, President and CEO of MODEC Pte Ltd., said: “Brazil continues to increase its production capacity to exploit its significant oil and gas reserves. MODEC is committed to supporting the country's energy aspirations and is pleased to have a good partner in the Keppel Group to support us on this journey. In fact, BrasFELS has been our shipyard of choice in Brazil because of its reliability, cost-efficiency and ability to meet our needs.”
For the FSRU conversion project, in addition to the repair and life extension work, Keppel Shipyard will carry out engineering, installation and shipyard integration of the regasification module and modernization of the cargo handling system. With delivery scheduled for late 2018, the FSRU will be able to regasify up to 750 million standard cubic feet of natural gas per day.
Keppel Shipyard has already delivered three FSRUs, including the world's first FSRU conversion. With the increasing demand for LNG in power generation, FSRUs are a fast, flexible, cost-effective, secure storage, regasification and protection solution that is suitable for deployment in remote areas with lower energy requirements. The world's first converted FLNG vessel, Hilli Episeyo, has achieved final acceptance and commenced commercial operations for Perenco in Cameroon. This was accomplished within four years of awarding the contract to the Keppel shipyard.
The above contracts are not expected to have a material impact on net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.