SembMarine clinches FSO conversion deal from Teekay

Sembcorp Marine’s wholly-owned subsidiary Sembawang Shipyard has secured a Floating Storage and Offloading (FSO) conversion contract worth S$56 million from Teekay for the Gina Krog Field in the North Sea.

Sembawang Shipyard will work closely with Teekay to convert the shuttle tanker Randgrid into an FSO. Major conversion works include installation of a new helideck, hull reinforcements, refurbishment of submersible turret loading (STL) compartment, installation of offshore crane, loading hose reel package, azimuth thruster and replacement of two generators, as well as associated piping and additional cabling works. The yard will also fabricate and install new living quarter decks on the vessel.

The vessel is expected to arrive at Sembawang Shipyard in June 2015, with completion in 11 months, after which the FSO Gina Krog will head towards the Norwegian North Sea under a charter contract between Teekay and Statoil.

Ong Poh Kwee, Deputy President of Sembcorp Marine and Managing Director of Sembawang Shipyard, said: “We are honoured to have been chosen by Teekay for this important conversion project. As on-time delivery is a priority, this fast track project will require our project team to demonstrate strong commitment to meet deadlines, innovative engineering solutions and close collaboration with the vessel owners to meet stringent North Sea offshore regulations.”

Terje Rusdal, Vice President Marine & Offshore Projects, Teekay, said: “As part of the project strategy, Sembawang Shipyard was selected by Teekay to be our partner shipyard during the challenging tender process. The shipyard has demonstrated its ability to work in tandem with us right from the project’s initial phase, showing dedication and commitment to resolve challenges as a team. We are confident that this partnership will be the blueprint of a successful conversion project for both Teekay and Sembawang Shipyard.”

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