Saipem SA Awards $600m Contract to SembCorp Marine


Saipem SA Awards $600m Contract to SembCorp Marine

Sembawang Shipyard, a wholly owned subsidiary of SembCorp Marine, has won a contract worth $600m from Saipem SA for the conversion of two Floating Storage Production Offloaders for the Kaombo Project in offshore Angola, around 150km from the coast.


The contract involves the conversion of two Very Large Crude Carriers (VLCCs) sister ships into two turret-moored FPSOs for the project. Other works include the refurbishment of the VLCCs, construction engineering, upper turret structure, access structure, integration of the topside components and lower turret components, fabrication of a flare and helideck, and pre-commissioning of the FPSOs.


SembCorp Marine stated: “The two converted FPSO units, owned by Total, will each have an oil treating capacity of 200,000 barrels per day, a 100 million scfd gas compression capacity and a storage capacity of 1.7 million barrels of oil.”


The contract was awarded to Sembawang Shipyard based on the strength of its capabilities and strong track record in the field of FPSO conversion, modification and upgrade work. Deputy President of SembCorp Marine, Ong Poh Kwee, said: “The award is a strong endorsement of our shipyard’s capabilities in the highly specialised field of FPSO conversion, modification and upgrading work.


“We thank Saipem for selecting Sembawang Shipyard to execute this prestigious contract and for their trust and confidence in our high Health, Safety, Security and Environment (HSSE) standards, quality, project management know-how, engineering design, outfitting and commissioning capabilities.”


The total project duration is currently estimated to be 32 months with the first VLCC (Olympia) expected to enter Sembawang Shipyard in Q3 2014, and the second VLCC (Antartica) in Q1 2015.