OFFSHOREMARINE A newsletter of Keppel Offshore & Marine March – April 2014 MICA (P) 137/12/2011 KEPPEL DELIVERS NORTH SEA JACKUP TO MAERSK CONTENTS One of the world’s first jackup with 3 P&A features Baku Shipyard’s first major contract 5 Keppel delivers North Sea jackup 6 to Maersk Servicing Vietnam 8 First for Brazil 10 Sharing on safety 14 Meeting of minds in Asia 19 Reaffirming business ties 20 CentResPREAD Near market, near customer in China 16 Centrespread 16 Keppel Offshore & Marine has signed a management services agreement with Titan Petrochemicals Group Limited (Titan) and Titan Quanzhou Shipyard Co. Ltd (TQS) to manage the TQS shipyard. Celebrating the partnership are (from right to left) Mr Wong Kok Seng, MD (Offshore) of Keppel O&M, Mr Chow Yew Yuen, CEO of Keppel O&M, Dr Xiong Shaohui, Chairman of Guangdong Zhenrong Energy Co. Ltd, Mr Loh Chin Hua, CEO of Keppel Corporation and Chairman of Keppel O&M, and Mr Zhao Xu Guang, Chairman of Titan. EDITORIAL BOARD EDITORIAL ADVISOR Chow Yew Yuen EDITOR Lai Ching Chuan ASSISTANT EDITOR Eva Ho COMMITTEE MEMBERS Michael Chia, Wong Kok Seng, Chor How Jat, Hoe Eng Hock, Dr Foo Kok Seng, Hayley Teo, Aziz Merchant, Toh Ko Lin, Hoo Yao Lin, Priscilla Chong, Alan I. Claveria, Betty Mok, Lucienne de Jong, Li Gang, Linda Mercado, Fairuz Aledroos, Roy Tan, Say Huan Yuan, 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 March – April 2014 One of the world’s first jackups with P&A features The accommodation jackup rig with Plug & Abandonment (P&A) features will be based on Keppel’s KFELS J Class design which is suited for the harsh environment of the Norwegian North Sea. Keppel FELS has signed an number of wells in both these It will be the first accommodation engineering services agreement regions that will need to be and service jackup unit that is with Workfox B.V, a subsidiary properly sealed up in the next specifically suited to support rigless of the Seafox Group (Seafox), to few years. activities for P&A and well services embark on an engineering study at a competitive cost. of a purpose-built accommodation Seafox 8 will be able to offer P&A jackup rig with well intervention services, well intervention services, Leveraging the successful and P&A features. as well as accommodation and partnership of an earlier project, crane support services. It has a Seafox 5, Keppel Offshore & The project, which is named Seafox spacious deck and comprehensive Marine (Keppel O&M) is also in 8, is being developed to address amenities for the comfort of 282 discussion with Seafox to enter into a gap in the current P&A market. persons on board. The jackup a joint venture to place an order Subsea fields are reaching the end can also be configured for other for Seafox 8 upon completion of of their productive lives in areas offshore support services. the study, which is expected in such as the North Sea and the Compared to existing jackups 2H 2014. Gulf of Mexico. With increasing chartered for P&A work, Seafox 8 environmental concerns and is expected to be 25-30% more regulations, there are a substantial economical in terms of dayrates. Continues on page 4... Seafox 8 will be able to offer P&A services, well intervention services as well as accommodation and crane support services OffshoreMarine March – April 2014 3 Continued from page 3... Mr Keesjan Cordia, CEO of Seafox, based on Keppel’s new KFELS J “This is an example of how we said, “With our background Class design which is customised to have been able to leverage and in providing accommodation operate in water depths of up to apply our technology expertise support, workover, construction, 112 metres in the harsh offshore innovatively for a variety of and decommissioning services to environmental conditions of the offshore applications. And with the offshore oil & gas industry, Norwegian North Sea. an experienced partner like Seafox we noticed the strong demand in this market, we are confident for P&A services and identified a Developed by Offshore Technology Seafox 8 will be well-received need for a specialised rig in this Development (OTD), Keppel’s R&D and give us a good head start in market. We believe the jackup we arm, the robust KFELS J Class is growing our track record as the are conceiving, Seafox 8, offers designed as a drilling jackup rig leading solutions provider for the the ideal solution as it can work for the Norwegian North Sea and P&A services sector.” all year round including during is an enhancement of Keppel’s the North Sea’s winter period and proven harsh environment drilling undertake multiple services at a rigs – the KFELS N Class and KFELS time. It is a real workhorse and G Class designs. Keppel O&M has unlike drilling rigs which are often previously delivered three rigs used to do P&A currently, Seafox 8 of each design, which have been has the crane capacity to assist successfully operating in the North with maintenance and well services Sea including Norwegian waters. activities. It has NORSOK-specified accommodation for crew and client Mr Wong Kok Seng, Managing personnel, and a lower operating Director of Keppel O&M (Offshore) cost than existing equipment with and Keppel FELS said, “We have a single role purpose.” successfully developed and commercialised many proprietary “We are glad to continue this concepts for a variety of offshore winning partnership we have services and challenging frontiers with Keppel in coming up with by partnering our trendsetting innovative products. Seafox 5, customers in the early stages of a multi-purpose self-elevating those projects. For Seafox 8, we are platform (MPSEP), which they taking the hull of an ultra-harsh built for us previously, has been environment rig in our KFELS J performing extremely well and Class for use as an accommodation I am confident that Seafox 8 will be rig with equipment for P&A just as successful.” services. The KFELS J Class extends The KFELS J Class is designed as a drilling the capabilities of our proven jackup rig for the Norwegian North Sea and is an enhancement of Keppel’s proven harsh The hull and legs of the new KFELS G Class and KFELS N Class environment drilling rigs – the KFELS N Class (in generation jackup rig will be designs for work in the North Sea. image) and KFELS G Class 4 OffshoreMarine March – April 2014 Baku Shipyard secures first major contract from Shah Deniz Stage 2 development. We believe that Baku Shipyard, under the management of leading global offshore and marine group Keppel O&M, is well placed to support Azerbaijan’s growth in the oil and gas sector, and we look forward to building up our track record with more significant contract wins in the years ahead.” Mr Gordon Birrell, BP’s Regional President for Azerbaijan, Georgia and Turkey, commented, “We are pleased to begin cooperation with yet another major local service company to advance the The SCV will be designed by Marine Technology Development, the ship design and development executional phase of the giant arm of Keppel Offshore & Marine Shah Deniz Stage 2 development project. This new flagship vessel Baku Shipyard has secured a an 18-men two-bell diving system, for the Caspian, to be built by contract from BP Exploration two work-class remotely operated Baku Shipyard, will provide (Shah Deniz) Ltd, the operator vehicles, a strengthened moon essential support for the of the Shah Deniz gas field pool, two engine rooms with construction of the Stage 2 subsea development, to design and build 6x4.4MW + 2x3.2MW engines structures which will form the a Subsea Construction Vessel (SCV). and a deadweight of 5,000 metric biggest subsea production system tonnes at 6.5 metres draft. in the Caspian. Clearly, the contract When completed, the SCV will underpins our plans to deploy for be deployed for the Stage 2 The SCV will be designed by the first time new advanced subsea development of the Shah Deniz Marine Technology Development, production technology in the field, which lies some 70 km the ship design and development Caspian as part of the Shah Deniz offshore in the Azerbaijan sector arm of Keppel Offshore & Marine Stage 2 development. of the Caspian Sea. (Keppel O&M). The vessel is expected to be completed in The SCV is the first major contract The Shah Deniz Stage 2 project April 2017. secured by Baku Shipyard since requires a subsea installation its inauguration by President of vessel to install the subsea Mr Rovnag Abdullayev, President Azerbaijan, H.E. Ilham Aliyev, in structures over 11 years between of State Oil Company of Azerbaijan September 2013. The shipbuilding 2017 and 2027. The vessel will Republic (SOCAR), said, “We yard was jointly developed by include dynamic positioning to are very privileged that BP SOCAR, Azerbaijan Investment allow for work in 2.5 metres Exploration (Shah Deniz) has Company (AIC) and Keppel O&M. significant wave height (Hs), a chosen Baku Shipyard to design SOCAR, AIC and Keppel O&M own 750 metric tonne-main crane for and build the SCV which will 65%, 25% and 10% share in the 600 metres-deep subsea operation, support the Shah Deniz gas field yard respectively. OffshoreMarine March – April 2014 5 Delivering first of three CJ70 rigs for Maersk Keppel has delivered the first of three GusoMSC CJ70 jackups for Maersk Drilling “Committed to provide state-of-the-art solutions to our customers, Keppel FELS has delivered the first Maersk Drilling seeks partners that share our safety, quality and of three GusoMSC CJ70 jackups for performance standards.