Keppel Offshore & Marine Ltd (Keppel O&M)’s wholly-owned subsidiaries, Keppel AmFELS in the U.S. and Keppel Shipyard in Singapore, have been awarded contracts worth around S$75 million (US$54.5 million) for the refurbishment and completion of two floating production units (FPU).
The first contract is by Keppel AmFELS with Salamanca FPS Infra, LLC for the refurbishment of a floating production unit to be operated by LLOG Exploration Offshore, LLC, a private exploration and production company in the U.S.
Keppel AmFELS’ scope of work on the production facility includes demolition, hull modifications, and upgrades to key systems. Expected to be completed in 2Q 2024, the Salamanca FPU will have a capacity of 60,000 barrels of oil per day and 40 million cubic feet of natural gas per day. It will be deployed in the deepwaters of the Gulf of Mexico to service the Leon field and the Castile field.
As the Salamanca FPU is being upgraded and modified from a previously decommissioned production facility, the time, cost and materials to be used are greatly reduced compared with the construction of a new facility. The project has a positive Environmental, Social and Governance (ESG) impact as it would reduce approximately 70% in carbon emissions compared to a new build, and also circumvents the scrapping of an old unit.
The second contract is between Keppel Shipyard and MODEC Offshore Production Systems (Singapore) Pte Ltd (MODEC) to support the completion of a Floating Production Storage and Offloading vessel (FPSO).
Keppel Shipyard’s scope of work is to complete the topsides integration work as well as supporting the pre-commissioning and commissioning activities for the FPSO. The vessel is expected to arrive at its Singapore yard in 4Q 2022.
When completed, the FPSO, which can process 100,000 barrels of oil per day and will be delivered to Woodside Energy (Senegal) B.V. (as operator of the Sangomar Field Development Phase 1). The FPSO will be moored in waters approximately 780m deep and will be located approximately 100km south of Dakar, Senegal.
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