Sembcorp Marine subsidiary Sembawang Shipyard has been awarded a floating storage production offloading (FPSO) conversion contract by Saipem.
Under the S$600m ($480m) contract, Sembawang will convert two FPSOs for the Kaombo project located in offshore Angola, approximately 150km from the coast.
The Shipyard will also be responsible for the conversion of two very large crude carriers (VLCCs) sister ships into two turret-moored FPSOs for the Kaombo project.
Sembawang Shipyard managing director Ong Poh Kwee said: "We are fully committed to work closely with all partners involved in this milestone project for a successful outcome.
"The buoyant offshore market offers exciting opportunities for both the Shipyard and owners, and we look forward to a long-term collaborative partnership with Saipem."
The contract scope includes refurbishment of the VLCCs, construction engineering, the fabrication of flare, helideck, upper turret and access structure, integration of the topsides modules (which will be fabricated at Saipem’s Indonesian Yard) and lower turret components, and pre-commissioning of the FPSOs.
Olympia, the first VLCC, is scheduled to enter the yard during the third quarter of 2014 and the second VLCC, Antartica, will slate to arrive in the first quarter of 2015.
Total owns the two converted vessels, which will have an oil treating capacity of 115,000bpd and a storage capacity of 1.7 million barrels of oil.