Keppel secures $705 million FLNG contract from Golar

Keppel secures $705 million FLNG contract from Golar

SINGAPORE -- Keppel Shipyard, a wholly-owned subsidiary of Keppel Offshore & Marine, has secured a firm contract from Golar Gimi, a subsidiary of Golar LNG, to perform the conversion of a second Moss LNG carrier, the GIMI, into a FLNG vessel.

The contract, which has become effective, is worth approximately $705 million.

The conversion award of the GIMI marks the exercise of the first of two options, which were part of an earlier firm contract awarded by Golar to Keppel Shipyard for the conversion of another Moss LNG carrier, the HILLI, into an FLNG vessel.

The work scope for Keppel Shipyard in converting the GIMI is similar to that for the HILLI. Keppel Shipyard will provide the design, detailed engineering and procurement of the marine systems and all of the conversion-related construction services. Keppel Shipyard will once again engage Black & Veatch, its trusted partner for the conversion of the HILLI, to provide design, procurement and commissioning support services for the topsides, as well as the liquefaction process utilizing its established PRICO technology.

Full construction activities of the GIMI will only commence when Keppel Shipyard receives a notice to proceed, expected to be issued no later than November 2015. In the meantime, orders for long-lead primary equipment such as gas turbines and cold boxes will be placed. The Golar Gimi FLNG vessel is expected to be delivered around thirty three months after receipt of the notice to proceed.