Keppel Corp Secures US$150m Semisubmersible Rig Deal
Keppel AmFELS, a subsidiary of Keppel Offshore & Marine and a wholly-owned company of Keppel Corporation (Keppel Corp), has secured a US$150 million ($195 million) contract to start the year off. Keppel AmFELS will build and upgrade a moored semisubmersible rig for a long-time customer, Diamond Offshore, with delivery scheduled for 3Q13. Earlier last month, Keppel Corp reported that it has won a contract valued at $809 million to build a semi-submersible drilling rig for Urca Drilling BV, bringing its new orders to reach a record high of some $10 billion at the end of 2011. Despite the current global financial crisis, Keppel Corp said it continues to get enquiries for new vessels, with all its customers consist of players in the drilling business. The firm is also confident of getting orders in a tender by Petrobas, which is spending nearly US$225 billion till 2015 to raise its oil production.
Significance: Keppel Corp has worked with Diamond Offshore on more than 20 projects since 1996. Markedly, Diamond’s rigs are sent regularly to Keppel Corp’s yards around the world for maintenance, repair and upgrade, with Keppel AmFELS has proven to be their choice yard in the US Gulf of Mexico.
Ezra Bags Two Contracts From Statoil
Ezra Holdings (Ezra)’ subsea unit, EMAS AMC, has won two contracts from Statoil, worth about 450 million krone ($97 million). The deals are worth up to 600 million krone if options to expand the work to more floating platforms are exercised. “The contracts mark another important milestone for EMAS AMC, combining our reputable engineering capabilities with our modern fleet of construction assets,” said Svein Haug, regional head for EMAS AMC (Europe and Africa). EMAS AMC was formed when Ezra acquired Aker Marine Contractors in late 2010. Ezra became a full-fledged service provider to the deepwater drilling industry.
Significance: This latest win pushes Ezra’s new subsea division ever closer to its US$1 billion short-term order book ambition. Notably, EMAS AMC’s subsea backlog of US$745 million formed the bulk of the Ezra’s order book of over US$1.2 billion for the fourth quarter ended 31 August 2011.
KSH Holdings Bags $110m Condo Contract
KSH Holdings (KSH) has secured a $110.28 million condominium contract from Precious Sand, a joint venture company between Far East Organisation company and a Frasers Centrepoint subsidiary, for the construction of Seastrand- a condominium development in Pasir Ris. Under the terms of the contract, KSH will be building two blocks of 12-storey residential buildings and seven blocks of 11-storey residential buildings, with a total of 473 units. For the fiscal second quarter ended 30 September 2011, KSH’s earnings jumped 24.1% to $5.2 million. Revenue on the other hand dropped 24.2% to $54.4 million.
Significance: With this new contract win, KSH’s existing order book of construction business now tips over $467 million, with completion and deliveries stretching till 2014.