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OFFSHOREMARINE a Newsletter of Keppel Offshore & Marine OFFSHOREMARINE A newsletter of Keppel Offshore & Marine November – December 2015 MICA (P) 137/12/2011 Multiple projects keep yards busy in 2016 CONTENTS Harnessing strengths and 3 seizing opportunities Keppel Shipyard delivers FPSO Front Puffin 9 N-KOM signs agreement with largest 10 Greek ship owner Execution excellence at Keppel FELS 12 Choice repair partner 15 Shell commendation on Turritella 16 Innovative construction at Baku Shipyard 18 Robust crisis response plans 28 Steadfast loyalty 30 Nurturing talent, celebrating success! 32 Enriching lives, inspiring dreams 38 Centrespread 3 CENTRESPREAD Keppel Shipyard achieved more than 500,000 Doing our part for safety 20 manhours worked without lost-time incident on the refurbishment and upgrading of the FPSO Front Puffin. EDITORIAL BOARD EDITORIAL ADVISOR Chow Yew Yuen EDITOR Lai Ching Chuan ASSISTANT EDITOR Roy Tan COMMITTEE MEMBERS Michael Chia, Wong Kok Seng, Chor How Jat, Abu Bakar Mohd Nor, Hoe Eng Hock, Dr Foo Kok Seng, Aziz Merchant, Toh Ko Lin, Hoo Yao Lin, Hayley Teo, Priscilla Chong, Alan I. Claveria, Betty Mok, Gabriela Soares, Lucienne de Jong, Li Gang, Linda Mercado, Fairuz Aledroos, Say Huan Yuan, Jayne Yeo, Lee Wan Jun OffshoreMarine is a bi-monthly publication of Keppel Offshore & Marine Ltd 50 Gul Road, Singapore 629351 Tel: +65 6863 7200 Fax: +65 6261 7719 / 6265 1927 Company registration no. 199900642R Keppel Offshore & Marine is a subsidiary of Keppel Corporation 2 OffshoreMarine November – December 2015 Harnessing strengths and seizing opportunities 2016 will continue to be a new capabilities. We remain LETOURNEAU’s well-established challenging year for Keppel positive about the long term aftermarket sales and services Offshore & Marine (Keppel O&M) fundamentals of the offshore platform. but the Group has the strength and marine industry, and expect to tide through and seize new oil price to eventually reach a On top of this, we have developed opportunities. Mr Chow Yew sustainable equilibrium, driven our own series of liftboat designs Yuen, CEO of Keppel O&M by demand for energy from a that will be able to undertake provided insights on this through rising middle class and increasing the maintenance of most shallow interviews with various media at urbanisation in developing water oil and gas fields and add the end of 2015, some of which are countries. value to the industry. An adjacent reproduced below. market to this is in the Plug & Q: Where are the opportunities for Abandonment (P&A) of subsea Q: With an oversupply of growth? oil and gas wells where we are rigs in the market, what is As a global industry leader, Keppel designing potential solutions after your expectation of contract Offshore & Marine (Keppel O&M) identifying a gap in this market. cancellation and deferment is always on the lookout for new possibilities? opportunities. Building on our Q: What is Keppel’s biggest Keppel Offshore & Marine has experience in conversion and challenge ahead? a $9 billion net orderbook at specialised shipbuilding, we are In response to the challenging the end of 2015, which provides growing our suite of LNG solutions market conditions, we are visibility into 2020. This was in tandem with the needs of the rightsizing our operations and carefully built up over the years LNG market. Our focus on LNG resources. Keppel O&M has and comprises mainly contracts solutions is also very much in line considerable flexibility in our from high-quality customers. While with the MPA’s broader objective workforce deployment with the deliveries of a few drilling of establishing Singapore as a LNG our contract workers, as well rigs have been deferred, these bunkering port by 2020. as overseas production yards. contracts are still in our orderbook, Even with our yards remaining and we have not received any We are confident that the FLNGV busy in the next two years, we request for cancellations. The conversion solution, which we are trimming our overheads and strong orderbook will bolster us have commercialised, will be making ourselves more efficient. in the year ahead as we continue attractive for the market and will to streamline and strengthen contribute to Keppel O&M’s overall We will also continue to invest ourselves to deal with the current business as it offers a cost-effective prudently in training, R&D and market conditions. option for developing fields at productivity improvements remote locations where huge through the down cycle. This is the Q: With oil prices expected to fall infrastructure investment is not fourth cycle in the offshore and further, what is your outlook for economical. marine industry that I’ve witnessed the industry in 2016? and with each cycle, we have I expect the offshore drilling Besides LNG solutions, we have learnt valuable lessons and have sector to remain challenging in acquired the LETOURNEAU™ rig emerged stronger than before. We the near term. We are preparing designs and aftermarket business have never allowed a crisis to go ourselves to meet the challenges to broaden our suite of jackup to waste and this time will be no by streamlining our processes, rig design solutions and better different. investing prudently and building support our customers through OffshoreMarine November – December 2015 3 2015 in review In 2015, Keppel Offshore & Marine FEBRUARY Shell Philippines Exploration BV on continued to build on its core Keppel FELS delivered the fourth time and with an excellent safety strengths and improve on its value high-specification accommodation record. propositions to customers. semisubmersible (semi) to Floatel Despite headwinds in the industry, International on time, on budget Keppel FELS delivered ENSCO 110, the Group accomplished key and with a perfect safety record. the seventh KFELS B Class Bigfoot project milestones and achieved jackup rig in Ensco’s fleet and the numerous business accolades. OM Keppel FELS delivered the latest generation of the series. newsletter takes a look at the year ultra-harsh jackup rig, Maersk in review. Integrator, to Maersk Drilling thirty N-KOM reached its 100th project days ahead of schedule, on budget milestone for liquefied natural gas JANUARY and with a perfect safety record. (LNG) carrier repairs. Keppel FELS delivered YUNUEN, a KFELS B Class jackup rig to Mexican Keppel Shipyard celebrated the MARCH national Oil Company, Petróleos sailaway of Floating Production Keppel FELS delivered a KFELS B Mexicanos (PEMEX), on time, with Storage and Offloading (FPSO) Class jackup rig, KUKULKAN, to a perfect safety record and within vessel, Ningaloo Vision, which it PEMEX safely, on time and on budget. refurbished for Apache Energy. budget. Keppel Singmarine secured three Keppel FELS delivered PV Drilling Keppel Nantong Shipyard received contracts. These include a contract VI, a KFELS B Class jackup rig, to an award for its occupational from New Orient Marine for a PV Drilling Overseas, on time, on health and safety performance in multi-purpose vessel, a contract budget and with a perfect safety 2014 from the Nantong City Safety from Seaways International record. It is the 100th jackup rig Administration of Work Safety. to build a multi-task Anchor Keppel FELS has built since 1970. Handling Tug and a contract from Keppel O&M won top awards at Nakilat-Keppel Offshore & Marine Keppel Subic Shipyard delivered a the 12th Annual Human Resources (N-KOM) to provide technical Depletion Compression Platform, Management Awards in three services for the construction of a the first such platform to be fully categories: Best Leadership liftboat. constructed in the Philippines, to Development Award; Best Training, Keppel Singmarine was contracted to build a multi-purpose vessel for Maritime Construction Services 4 OffshoreMarine November – December 2015 three KFELS B Class jackup rigs – CANTARELL I, CANTARELL II and CANTARELL III – built for Mexican company, Grupo R. Asian Lift, a joint venture between Keppel Offshore & Marine and Smit Singapore, celebrated the naming of Asian Hercules III, the largest and most versatile sheerlegs crane of its kind in the world. JUNE BrasFELS shipyard in Brazil delivered the Floating Production Storage and Offloading (FPSO) vessel Cidade de Itaguai MV26 to MODEC and Toyo Offshore Production Systems Pte Ltd (MTOPS) ahead of schedule and with an excellent safety record. JULY Keppel O&M clinched 31 Workplace Safety and Health (WSH) Awards on 29 July 2015, the highest number of awards won by a single organisation in the year. PV Drilling VI is the 100th jackup rig to be delivered by Keppel FELS, a milestone that reaffirms the Keppel FELS secured a contract yard’s position as the largest manufacturer of jackup rigs in the world from Crystal Heights, a company specialised in the offshore oil Learning and Development Award; Natural Gas (LNG) and diesel fuel and gas market, to build a and Best Graduate Development at the Singapore International high-specification liftboat. Award Maritime Awards (IMA). Keppel Shipyard signed a APRIL Caspian Shipyard Company (CSC) contract with Golar Gandria N.V. Keppel Offshore & Marine was a winner at the Azerbaijan to perform the conversion of a Technology Centre (KOMtech) safety and health competition Moss type Liquefied Natural Gas was conferred the Outstanding organised by the Azerbaijan Trade (LNG) carrier, the GANDRIA, into Maritime R&D and Technology Unions Confederation. a Golar Floating Liquefaction Award for its design of an Azimuth (GoFLNG) facility. Stern Drive (ASD) tug with a MAY 65-tonne bollard pull capacity Keppel FELS held the world’s
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