Professional Documents
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Issue 2-2018 PDF
Issue 2-2018 PDF
TRAILBLAZING
LNG
SOLUTIONS
CONTENTS
BW ADOLO nears delivery 7
Developing autonomous vessels 8
Transforming industry 9
Showcasing capabilities 10
Knowledge sharing 18-19
Shaping the future as OneKeppel 20-22
A Keppelite at heart 23
Stronger together as OneKeppel 24-25 Centrespread 18
Keppel to build mid-water harsh 28
environment rig
CENTRESPREAD
End-to-end LNG solutions 14-16
TECHNOLOGY & INNOVATION Mr Chris Ong, CEO of Keppel O&M, addressed key
Cutting through the noise 17 executives from around the world at the company’s
biannual strategy meeting
EDITORIAL BOARD
EDITORIAL ADVISOR
Chris Ong
EDITOR
Ang Ting Yang
ASSISTANT EDITOR
Brian Lee
COMMITTEE MEMBERS
Chor How Jat, Abu Bakar Mohd Nor, Dr Foo Kok Seng, Aziz Merchant,
Hoo Yao Lin, Alan I. Claveria, Li Gang, Lee Wan Jun, Roy Tan, Ana Luisa,
Mary Ann Bey, Glenda Yang, Ching You Yi, Ong Wen Qi
OPERATIONS REVIEW
We are seeing increasing
confidence in the offshore and
marine business, underpinned
by rising oil prices. While there
are pockets of opportunities in
niche markets, it may take some
time before we can see sustained
recovery across the board. The
jackup market continues to be
plagued by a supply overhang, Keppel FELS delivered SAGA, the first of five jackup rigs to Borr Drilling in January 2018
KEY HIGHLIGHTS
Offshore & Marine Keppel O&M’s net orderbook as
at end-March 2018 stood at
Net orderbooki Key Highlights
$4.3 billion compared to
S$4.3b as at end-Mar 2018 Secured Keppel’s first newbuild drilling
rig order in 3 years
$3.9 billion at the end of 2017.
4.3
3.9
Cooperation agreement with
0.1
0.2
KrisEnergy Earlier this month, we announced
0.7
0.7
a cooperation agreement among
Updates on FLNG business
Keppel FELS, Keppel Shipyard and
S$b
2.1
2.2 Golar Hilli Episeyo achieved first
gas offshore Cameroon KrisEnergy where Keppel, as the
0.7 preferred contractor, will offer
0.2 Early works on Golar Gandria
0
0.7 0.6
progressing at Keppel Shipyard KrisEnergy a comprehensive suite
End-2017 End-Mar 2018
1Q 2018
of offshore oil and gas solutions.
Newbuild jackups Newbuild semis
FPSOs/FLNGs Specialised vessels
Others ii
In March, Hilli Episeyo, the
i Excludes semis for Sete
ii Includes modification, upgrading, fabrication and rig repairs world’s first converted floating
8 liquefaction vessel which Keppel
built in partnership with Golar,
achieved first gas in offshore
Cameroon. With the successful
Due to the reduced volume of in 2014. It also demonstrates first production, the market is
work and our share of associated that despite the downturn, the gaining increasing confidence
companies’ losses, Keppel O&M industry continues to have a in converted Floating Liquefied
made a loss of $23 million for preference for high specification Natural Gas solutions. Golar has
1Q 2018. Operating profit for rigs to be built by a reliable reported that the proof of concept
the Division was $8 million in this partner. in Hilli Episeyo is expected to
quarter, slightly higher than the speed up and open a wider variety
$4 million in 1Q 2017. Earlier this month, we also of financing alternatives for the
announced a new order for a Fortuna project where the second
Despite the challenging dual-fuel bunker tanker. This is the converted FLNG vessel, Gandria,
environment, Keppel O&M secured seventh dual-fuel LNG powered will be deployed. The vessel has
new contracts worth about vessel to be built by Keppel O&M, since been moved from layup and
$580 million year to date. This which is testament to our ability to is currently in Keppel Shipyard for
includes a contract to build a provide compelling solutions across early works.
mid-water harsh environment the gas value chain.
semisubmersible worth about CAPTURING OPPORTUNITIES
US$425 million for Awilco Drilling, In January, Keppel O&M delivered As we had announced previously,
with options to build three similar the first of its five jackup rigs Keppel O&M is taking advantage
units, to be exercised progressively novated to Borr Drilling last year. of the downturn to streamline
over 36 months. The first rig, SAGA, built to our operations, build new capabilities
proprietary KFELS Super B Class and capture new markets. To help
Securing the order from Awilco is design, was delivered safely, on our customers improve operational
a significant milestone as it is our time and on budget. We are on efficiency and lower costs across
first newbuild drilling rig order track to deliver the second rig to the project life cycle, Keppel O&M
since the start of the downturn Borr Drilling later this year. is developing rigs of the future
IN CONVERSATION
OffshoreMarine shares highlights of management’s responses to key questions from the media and investment
community.
Q: Is further restructuring required was one of the lowest in a number Q: Could you provide an update on
in the Offshore & Marine (O&M) of years, we still had a small the Can Do drillship? Have there
Division? operating profit. been any enquiries for the vessel?
LCH: As shared previously, we have CO: The Can Do drillship is under
gone through a lengthy rightsizing For now, the key is to look for new construction and final stages of
exercise, starting from early 2015. revenue growth and new orders. testing. It is scheduled to be ready
We believe that Keppel Offshore & The contract with Awilco for the for the market in 4Q 2018. We are
Marine (Keppel O&M) is now about harsh environment mid-water currently talking to a few of our
the right size. semisubmersible is an important customers on the vessel.
win for us. We will continue to
In 1Q 2018, despite the fact that hunt for new projects while Q: Sete Brasil could resume the
the Division’s quarterly revenue watching the restructuring closely. construction of some drilling rigs
following its settlement with
PetroBras. How quickly will you be
able to resume construction of the
units?
CO: While PetroBras has approved
the main terms for a possible
agreement with Sete Brasil, the
details of this agreement are still
to be negotiated. We will provide
updates if there is further news.
Urbanisation is a macro trend that in archipelagic states or along developed in collaboration with
is impacting countries all over waterways, which are unserved by other business units in the Keppel
the world. More than 55% of the pipelines, through our small-scale Group.
world’s population live in cities, LNG solutions. In the renewable
and this number is expected to rise energy space, we are supporting We will also harness technology
further over the coming decades. offshore wind farm developments to continue to enhance the
Urban centres require a wide range as well as exploring other sustainability and efficiency of
of infrastructure solutions and also solutions. our products, to better meet the
account for 70% of global energy evolving needs of the market.
consumption, with an increasing We are also refining our offerings
focus on renewables and cleaner by leveraging our offshore Let us continue to work towards
sources of energy. expertise to develop floating realising Keppel O&M’s Vision
infrastructure solutions, which to be the provider of choice
Keppel O&M is supporting this may provide more viable and and partner for solutions in
macro trend by helping to meet efficient alternatives to land the global offshore and marine
the demand for energy through based solutions. Examples range industry, in support of the broader
oil and gas E&P solutions where from floating data centres and Keppel Group’s Mission to be a
our rigs and production vessels desalination plants to near shore solutions provider for sustainable
are used, as well as through urban developments, which can be urbanisation.
our other products that address
transportation, infrastructure,
renewables and other needs. KEPPEL GROUP’S VISION & MISSION
A global company at the forefront of our chosen industries,
In addition, we are enabling the shaping the future for the benefit of all our stakeholders –
use of cleaner sources of energy Sustaining Growth, Empowering Lives and Nurturing Communities.
with a comprehensive suite of
solutions across the gas value Guided by our operating principles and core values, we will deliver
solutions for sustainable urbanisation profitably, safely and
chain. Through our proprietary
responsibly.
floating LNG solutions, we
have delivered the world’s first
KEPPEL O&M’S VISION & MISSION
converted floating liquefaction Our vision is to be the provider of choice and partner for solutions
vessel and floating regasification in the global offshore and marine industry.
unit, as well as developed LNG-
fuelled vessels. We are also We seek to achieve customer satisfaction through technological
exploring opportunities in the leadership and in building a people oriented organisation.
electrification of remote regions
The naming ceremony for BW ADOLO was graced by Guest-of-Honour, His Excellency Mr Pascal
Houangni Ambouroue (second from left in front row), Gabon Minister of Petroleum
and Hydrocarbons, and attended by management from BW Group, Panaro Energy and
Keppel O&M, including Mr Chris Ong (first from left in front row), CEO of Keppel O&M
In the context of ports, the The signing of the MOU was witnessed by Dr Lam Pin Min (standing in centre), Senior Minister of
State, Ministry of Transport & Ministry of Health
development and application of
remote or autonomous vessels
could potentially automate phase to develop autonomous to help optimise the vessel
operations and enhance safety and vessels. VesselCare™ is able to operations using data analytics
productivity. Such developments perform data consolidation, and visualisation tools. TCOMS
and pilot projects will contribute to condition based monitoring and will provide expertise in coupled
Singapore’s experience and act as maintenance, mining and analytics physical-numerical modelling and
demand drivers for local capability of vessels. simulation to evolve solutions
development in selected areas. that improve on the predictability
Mr Chris Ong, CEO of Keppel O&M and control of the behaviour and
Mr Andrew Tan, Chief Executive said, “As a leader in the design response of the vessel.
of MPA, said, “Our partnership and construction of specialised
with Keppel O&M and NUS TCOMS vessels, we have been developing Prof. Chan Eng Soon, CEO of
allows us to test the operations advanced remote monitoring and TCOMS, added, “The behaviour
of autonomous vessels such as analytics systems for vessels. The of marine vessels in challenging
harbour tugs in our port waters industry is keen to explore the operating conditions is complex
as well as the interface between commercial use of autonomous and to some extent still poorly
such vessels and our future vessel vessels as there are multiple safety, understood. This is one key
traffic management systems. As efficiency and cost benefits. technical challenge that we
one of the world’s busiest ports, This partnership demonstrates seek to address, to ensure that
Singapore provides an excellent Keppel O&M’s commitment to be autonomous vessels could operate
test-bed for autonomous systems at the forefront of research and safely and reliably while enhancing
which will have to meet the provide the latest cutting-edge efficiency and productivity.”
highest standards of safety and technologies to our customers.”
security.”
During the advanced stages of
Keppel O&M will use its remote monitoring and controlling a
vessel monitoring and analytics vessel, the project will develop
programme, VesselCare™, as a Digital Twin of the tug which
the base platform in the initial will simulate vessel behaviour
Then Minister for Trade and Industry (Industry), Mr S Iswaran (eighth from left) launched the Marine & Offshore Engineering Industry Transformation
Map together with key industry partners, including Mr Chris Ong (fourth from left), CEO of Keppel O&M, and Mr Abu Bakar (seventh from left),
President of ASMI and MD(Gas and Specialised vessels) of Keppel O&M
To propel Singapore’s offshore initiative for the industry to Keppel O&M leveraged its existing
and marine industry to its prepare for the future. At capabilities to carry out complex
next phase of growth, the Keppel O&M, we are leveraging offshore conversion projects and
Economic Development Board innovation and technology to deliver the world’s first converted
(EDB) launched the Marine & enhance our value proposition. Floating Liquefaction Vessel. Given
Offshore Engineering Industry For instance, we are diversifying their prominent position in the
Transformation Map (ITM) to our product offerings to include global M&OE eco-system, our
generate some $5.8 billion of solutions across the gas value chain LLEs (large local enterprises) can
value-add and create 1,500 jobs and in renewable energy. We are lead the way in restructuring and
by 2025. also incorporating digitalisation diversifying.”
through our Asset Care service
The ITM was launched by then offerings that will provide real Keppel O&M actively participates
Minister for Trade and Industry time monitoring and analytics to in industry initiatives that help to
(Industry), Mr S Iswaran on our customers in optimising the propel the offshore and marine
22 February 2018 in conjunction operations of their rigs or vessels. industry forward. Another
with the establishment of an ITM In our yards, we are improving our example is Workforce Singapore’s
Programme Office within the processes and productivity through Professional Conversion
Association of Singapore Marine robotics and 3D printing, while up- Programme (PCP), which allows
Industries (ASMI). As a leader in skilling our people to take on new professionals to undergo skills
Singapore’s maritime industry work.” conversion and move into new
in Singapore, Keppel Offshore sectors that have opportunities for
& Marine (Keppel O&M) is a key Minister Iswaran said at the progression. The 6-month marine
participant in the ITM. launch, “Another opportunity PCP provides classroom training
lies in diversification into new and well as structured on-the-job
Mr Chris Ong, CEO of Keppel O&M growth areas, such as Liquefied training with shipyards including
said, “We are pleased to be part Natural Gas (LNG) and offshore Keppel O&M.
of the ITM as it is an important renewables. In October last year,
As a leader in specialised
shipbuilding, shiprepair and
expertise in maritime infrastructure
products, Keppel O&M is well-
positioned to support Indonesia’s
maritime growth. Minister Budi
Karya Sumadi was given a tour of
the shipyard and a presentation on
the yard’s capabilities.
SHARING AT THE LNG FORUM in LNG projects as a leading chain, to help them move into
Amidst a global drive by the repairer of LNG vessels. Besides FID (Final Investment Decision),”
maritime industry to lower carbon drydocking LNG vessels, we can Mr Chris Ong added.
emissions by focusing on natural carry out FSRU (Floating Storage
gas as a cleaner source of energy, and Regasification Unit), FLNG “Keppel is able to support and
Singapore is set to benefit from (Floating LNG vessel) and engine stitch up end-to-end solutions in
the growth of the LNG market. conversions.” the LNG value chain by working
with our customers from the
This was the general consensus The session featured in-depth beginning to develop solutions
by industry leaders who spoke at discussions on the macro outlook that will allow them to analyse if
the inaugural Sea Asia LNG Forum of LNG production and demand, the economics of the respective
organised by Seatrade and the shipping and regasification gas fields work.”
Singapore Maritime Foundation solutions and downstream markets
(SMF) held on 24 April 2018. including the development of small The forum was part of the annual
scale LNG and LNG bunkering. Singapore Maritime Week run by
A panelist at the forum, Mr Chris the MPA.
Ong, CEO of Keppel O&M, said, “Today, for projects to materialize,
“Singapore has a strong maritime it requires a great deal of factors to
cluster here to provide a one- fall into place. Companies need to
stop shop for customers and our act as industry enablers to connect
yards have a wealth of experience the relevant players in the value
Mr Chris Ong (second from right), CEO of Keppel Offshore & Marine, speaking at a panel on LNG shipping and regasification markets
“The session allowed us to better Mr Herman Effendy, President teams in respecting the laws and
understand what the company of BrasFELS said, “We must be regulations of the countries where
is doing to tide through this focused on not just achieving Keppel operates, as well as the
difficult time. These engagements strong results, but also in the Group’s policies and procedures.”
are a platform for transparent manner in which we achieve these
conversations, and this motivates results. All managers and leaders
us to continue performing well at must continue to guide their
BrasFELS.”
REINFORCING COMPLIANCE
STANDARDS
In March 2018, a team from Keppel
Corporation and Keppel O&M
consisting Mr Kevin Chng, GM
(Group Risk & Compliance), Keppel
Corporation, and Mr Nicholas
Choo, GM (Compliance),
Keppel O&M, visited BrasFELS
shipyard.
The fourth annual Group-wide “In the past 50 years, Keppel has building resilience, staying
townhall, the Global Keppelites built strong foundations. We relevant and adopting a growth
Forum, was held on 1 February worked to be at the forefront of mindset.
2018. To mark Keppel Corporation’s our chosen industries. This year,
50th anniversary, this year’s Forum we have refreshed our mission In addition, as the Group works
was held at Suntec Singapore to unify Keppelites behind a towards Vision 2020, Mr Loh urged
Convention & Exhibition Centre, shared purpose, which is to Keppelites to remain guided by
and was attended by close to 500 provide solutions for sustainable our core values and operating
Keppelites from across the Group. urbanisation profitably, safely principles.
The Forum was also broadcast and responsibly. Our work goes
live to close to 2,000 Keppelites beyond making profits, it is He said, “It is important for all
gathered in about 70 locations really about improving lives of us to reflect on our eight core
worldwide. and shaping a better future for values, understand them well
everyone,” Mr Loh said. and incorporate them in our
In his address, Mr Loh Chin Hua, lives. In 2018, our focus is on risk
CEO of Keppel Corporation, PREPARING FOR THE FUTURE management, compliance control
provided an overview of the As Keppel Corporation celebrates and safety. To achieve our goals of
Group’s milestones, strategy, its 50th anniversary, Mr Loh full compliance and risk awareness,
and priorities for 2018. In line encouraged Keppelites to reflect no control failures and zero
with the theme of ‘Shaping the on the future direction of the fatalities, the tone from the top
Future’, Mr Loh shared on how company and develop new must be strong and all of us must
the Group is well-positioned to engines of growth. With the be proactive.”
pursue opportunities in sustainable external environment becoming
urbanisation and improve the lives increasingly complex, Mr Loh Recognising people as the
of the communities that the Group highlighted three strategic company’s most important
operates in. thrusts for a FutureKeppel – asset, Mr Loh also spoke on
management’s goal of making are bright lines that we should Given the downturn in the
Keppel a great place to work. not cross. With our enhanced Offshore & Marine sector, how
compliance programme, all of us does Keppel O&M plan to retain its
He shared, “We are determined to must make sure that the good talent?
weed out unnecessary work and name of Keppel is protected and CO: Keppel O&M remains
focus our energy on developing that we do not engage in illegal committed to developing its
better solutions for customers, acts. I believe that with our strong people. While the market has
improving efficiency and exploring capabilities, we can win business taken a hit, we have spared no
new profit pools.” fairly, legitimately and ethically. efforts in succession planning
and have a strong talent pipeline.
VALUABLE INSIGHTS What does the current focus on We make sure that we share the
During the question and answer compliance mean for the Can Do! company’s future plans with our
(Q&A) segment after the CEO’s spirit? talents and ensure that they are
address, Keppelites enthusiastically LCH: As we go through this engaged.
posted questions via live web period, people may become more
portal Pigeonhole to a panel cautious. This is understandable LCH – Mr Loh Chin Hua, CEO of
comprising Mr Loh, Mr Chan Hon and not necessarily a bad thing. Keppel Corporation
Chew, CFO of Keppel Corporation, It is good for our people to CHC – Mr Chan Hon Chew, CFO of
Keppel Corporation
and CEOs across Keppel’s business develop a better understanding
units. OffshoreMarine shares some of the rules and to make sure CO – Mr Chris Ong, CEO of Keppel
Offshore & Marine
highlights of the 45-minute Q&A that we are compliant. However,
segment. compliance is not a reason for
inaction. Compliance is not here
Can the management share more to stop you from doing business.
on Keppel O&M’s corruption case Instead, it is to ensure that
in Brazil? business is being conducted the
LCH: Integrity is one of Keppel’s right way.
core values and we must reflect
deeply on how such an incident CHC: I have always admired Keppel
could have happened. Since the for its entrepreneurial spirit. Even
allegations emerged, we have as we strengthen compliance
moved quickly and decisively. As practices, we should continue to
Chairman Dr Lee Boon Yang and retain this virtue, which is unique
I have said, the company has zero to Keppel, and think of compliance
tolerance for corruption. While as a partner which makes sure that
we encourage Keppelites to take we do the right thing as we do
legitimate business risks, there well.
Broad-based curriculum
The Keppel Offshore & Marine two from BrasFELS and one from range of business and engineering
(Keppel O&M) Technology and Keppel Batangas. topics.
Engineering Development (KTED)
Programme commenced on Jointly organised by Keppel O&M One such course explores the
23 April 2018, with 37 Keppelites and the Singapore University of success factors in disruptive
participating in the third edition Technology and Design (SUTD), the innovations such as Artificial
of this well-received programme. KTED programme is designed with Intelligence, so that participants
This year, the cohort consisted of a broad-based curriculum so that are better equipped to identify
Keppelites from overseas, including Keppelites are exposed to a robust and create game-changing
innovations of their own.
Mr Lim Tow Fok, GM, Property Management at Keppel Land and A stellar showing from Team Atlantic saw the swimming crown returned
President of Keppelite Recreation Club flagged off runners for the long to them for another year running
distance events at the break of dawn
Keppelites giving it their all to sprint to the finish line in the track segment
Keppelites embodying the spirit of OneKeppel at the Keppel Games Grand Finale
Memorable engagement
Volunteers from Keppel FELS spent She also thanked the volunteers for “It’s the first time our patients
a meaningful afternoon with 23 always planning activities with the have played such a game, and I’m
elderly patients at the Yishun patients’ welfare in mind, noting sure it will benefit our patients in
Community Hospital on that maintaining patients’ the long run if we continue doing
28 February 2018 as part of their concentration levels has always been it,” she shared.
ongoing series of game sessions a challenge for them at the hospital.
with the patients.
use of real time data in the rig’s in the North Sea. This will be the semis have picked up considerably
operations and maintenance third semi to join our fleet. With since the start of 2017.