Keppel’s offshore unit to form JV with Rosneft

A view of a Keppel Corporation shipyard in Singapore January 19, 2016. Singapore's Keppel Corporation Ltd said on Thursday its fourth-quarter net profit fell 44 percent and its 2015 profit dropped to a five-year low as plunging oil prices hit demand for offshore rigs. Picture taken January 19, 2016.  REUTERS/Edgar Su

Conglomerate Keppel Corp’s offshore and marine unit signed a shareholders’ agreement with Russian oil firm Rosneft and Norwegian drilling equipment firm, MHWirth, to set up a Singapore incorporated joint venture company.

The company will establish a design and engineering centre in the Russian Federation, with initial projects from Rosneft for work related to shallow water platforms, Singapore’s Keppel Offshore and Marine said in a statement last week.

It will also seek work from other Russian and international customers.

Keppel O&M and Rosneft will have shares of 45 percent each in the joint venture, while MHWirth will hold 10 percent. The joint venture and the centre will adhere to existing U.S. and European Union sanctions imposed on the Russian offshore oil and gas sector, it said.

The deal comes as Singapore’s Prime Minister Lee Hsien Loong makes his first bilateral visit to Russia.




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