Keppel Corp’s offshore and marine (O&M) arm has secured four contracts worth a total of about S$125 million, marking its first new project wins since August.
The four contracts include a liquefied natural gas (LNG) Floating Storage Unit (FSU) vessel conversion awarded by a wholly-owned subsidiary of long-time customer Bumi Armada, Keppel said in a statement on Tuesday (Dec 29).
All four contracts involved repeat customers.
Mr Chow Yew Yuen, Chief Executive Officer of Keppel O&M, said: “Even in challenging market conditions, we are glad to be the choice yard for operators. This is the 14th conversion/upgrading project that we are undertaking for Bumi Armada. It is also their first LNG FSU conversion project and we are proud to be their trusted partner again.”
Keppel’s O&M arm and rival Sembcorp Marine have been affected by the sharp drop in oil prices, which prompted energy companies to cut back on exploration and defer existing orders.
Sembcorp Marine warned earlier this month that it expects to record a net loss for the fourth quarter ending December, due to the challenging operating environment and customers deferring or seeking to defer their rig orders.