Singapore entrepreneur vying for $5.8 billion FPSO award
Singapore’s Keppel Offshore & Marine is currently negotiating two floating production, storage and offloading vessel contracts with Brazilian state-owned Petrobras which, if awarded, would add more than S$8 billion (S$5.8 billion). dollars) to the contractor’s backlog.
The Singapore offshore and marine company was the only qualified bidder in Petrobras’ tender for its P-80 FPSO and is currently in advanced discussions for this float work as well as an option for a second FPSO. Both of these FPSO projects will have milestone payments with a 10% down payment from the customer upon execution of the contracts.
In the first half of 2022, Keppel O&M was profitable – achieving stronger results thanks to higher revenues, higher investment income and gains from its disposal of Keppel Smit Towage and Maju Maritime. The outlook for the offshore and maritime industry is expected to improve due to rising oil prices, the contractor noted.
Keppel O&M in the first half of this year secured S$256 million in new orders, including FPSO module fabrication and integration, FPSO topside integration and trailing suction hopper dredger jumboization , bringing its net order backlog to $4.4 billion. (S$11.49 billion gross) as of June 30.
Against this backdrop, work to complete the contractor’s merger with fellow Sembcorp Marine is “progressing well” for expected completion by the end of the year, Keppel Corporation Chief Executive Loh Chin Hua said Thursday. .
“Anti-trust filings have been filed in various markets and we hope that the approvals will be obtained on schedule. Keppel and Sembcorp Marine are also simultaneously working on submitting the relevant applications to SGX (Singapore Stock Exchange) for the respective shareholder meetings to approve the proposed combination,” Loh said.
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Meanwhile, Keppel O&M is making encouraging progress with its legacy platforms being divested alongside the planned merger.
“The short-term shortage of modern rigs has led to an increase in inquiries, as well as usage and daily rates for jackups and floats in benign environments,” he said.
In May, Keppel O&M announced bareboat charter contracts worth S$255 million for four of its former jackups, with charter periods of three to five years and the contractor is also hiring potential buyers for some of its drilling assets.
“Given the improved market sentiment and traction achieved so far, we are confident that legacy platforms can be monetized significantly over the next three to five years,” Loh added.
Parent Keppel reported a net profit of S$498 million for the first half of 2022, up 66% year-on-year.
The company is growing in renewable energy, clean energy and decarbonization solutions.
“Climate action and the energy transition should accelerate. At the same time, energy security considerations would become increasingly critical for governments, driving demand for sustainable energy infrastructure. With the global push towards net zero, sustainability-related products and services will be a major growth area, which bodes well for Keppel’s energy efficiency, carbon reduction and clean energy solutions,” concluded Loh.
“So these are very exciting times for Keppel as we prepare for a new phase in the company’s growth journey. Keppel is in the right space at the right time.