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Singaporean company seals Nigeria FPSO deal worth $902m on Anyala, Madu oil fields

Keppel Offshore & Marine, A Singaporean shipping company has secured a contract to handle the progress amendment and upgrading of a Floating Production Storage and Offloading (FPSO) vessel bound for work at Anyala and Madu discoveries in Oil Mining Leases (OML) 83 and 85.

 

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According to information published on Keppel Offshore & Marine website, under a deal with  Malaysia based Yinson, Keppel will work to upgrade and modify the Allan FPSO, which will be deployed in the Anyala and Madu fields, offshore Nigeria for Lagos-based independent oil firm First Exploration and Petroleum Development Co Ltd.

 

The bareboat charter deal is also accompanied by operations and maintenance (O&M) deal, with the total value of both deals up to $901.79 million.

 

The plan for Yinson is scheduled to commence in Q3 2019 with delivery expected in Q1 2020. Upon completion, the FPSO will have a storage capacity of 700,000 barrels of oil and a processing capacity of 60,000 barrels of oil per day. It will be deployed in the Anyala and Madu fields, offshore Nigeria for First E&P.

 

CEO of Keppel O&M, Chris Ong said the Singapore based firm is pleased to secure these contracts from repeat customers as it reflects the market’s confidence in Keppel O&M’s customised solutions for newbuild vessels and FPSO conversions.

 

“This is the third newbuild dredger for Van Oord and the third FPSO project for Yinson. We are able to leverage the experience of working closely with our customers as well as our engineering and construction expertise to further improve productivity on their projects,” CEO of Keppel O&M said on the company website.

 

Eirik Barclay, CEO of Yinson Offshore Production, said, “We have chosen to partner with Keppel Shipyard for this fast-track upgrade project just as the market is showing a positive trend with an increasing number of both project awards and tenders. We very much look forward to working with Keppel on this project and are confident that they, once again, can provide a high-quality, safe and on-time delivery to Yinson.”

 

Keppel’s scope of work includes refurbishment and life extension works, fabrication and installation of a new riser balcony, spread mooring system and helideck, as well as modification of the vessel’s topsides and marine systems.

 

“The above contracts are not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year,” Keppel said.

First E&P, established in 2011, owns 40 percent of the rights to Anyala and Madu fields with the remaining 60 percent being help by Nigeria National Petroleum Corporation (NNPC) which were acquired from Chevron Nigeria Limited (CNL).

 

OML 83 covers and aerial extent of 125 sq. km, with Anyala field as the only discovery within the acreage while Madu field which is the main discovery within OML 85, has an aerial extent of 521sq.km. Anyala field is located at a water depth of 55m, about 45km off the coast of Bayelsa State.

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