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Sembcorp Marine wins S$600m FPSO conversion contract

Sembcorp Marine's wholly-owned subsidiary Sembawang Shipyard will convert two very large crude carriers (VLCCs) into two FPSOs for a project located off the coast of Angola.

SINGAPORE: Singapore oil rig builder Sembcorp Marine on Monday (July 21) announced a floating production storage and offloading (FPSO) conversion contract worth about S$600 million from Saipem, France, in another sign of continued healthy demand for vessels used in offshore oil exploration and production. 

The contract, clinched by Sembcorp Marine's wholly-owned subsidiary Sembawang Shipyard, involves the conversion of two very large crude carriers (VLCCs) into two FPSOs for the Kaombo project located about 150km off the coast of Angola. 

The two converted FPSO units will each have an oil treating capacity of 115,000 barrels per day, a water injection capacity of 200,000 barrels per day, a 100 million standard cubic feet per day (scfd) gas compression capacity and a storage capacity of 1.7 million barrels of oil.

High oil prices have boosted exploration and production activities in waters around the world, boosting the order books of Singapore's Keppel Corp and Sembcorp Marine, which are the world's two largest builders of offshore rigs.

Sembcorp Marine said in May this year that it has a net order book of S$12.9 billion with completion and deliveries stretching into 2019.

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