KUALA LUMPUR (Oct 26): Keppel Shipyard Ltd, a wholly-owned subsidiary of Keppel Offshore & Marine (Keppel O&M), is on track to deliver the Armada Olombendo floating production storage and offloading (FPSO) vessel to Bumi Armada Bhd for its Angola operations.

The vessel — said to be one of the largest FPSO vessels in the world — measures 382m in length and 58m in width, with a design life of 20 years.

“Armada Olombendo FPSO is one of Bumi Armada's great achievements as this is the largest FPSO project undertaken by the company and incorporates both the highest oil production capacity to date and one of the largest external turrets used offshore," said Bumi Armada chief executive officer Leon Harland in a joint statement today.

“This is a testament to the capabilities and dedication of our employees, our partners, and our contractors," he added.

The vessel has a crude oil production capacity of 80,000 barrels per day, 120,000 barrels per day of water injection, 120 million cu ft of gas handling and a net storage capacity of 1.7 million barrels.

The FPSO will be deployed to block 15/06 East Hub Field Development off Angola for its charter contract with Eni Angola.

"The conversion of the VLCC tanker to FPSO Armada Olombendo is the 16th conversion project that Keppel has executed for Bumi Armada and we are glad to have built a strong win-win partnership with our long-standing client,” said Keppel O&M managing director of marine and technology Michael Chia.

He added that the group has also delivered a liquefied natural gas floating storage unit (FSU) and another FPSO to Bumi Armada.

“With the current low oil price environment, it is a testament to Bumi Armada's strong operational excellence that their FPSOs continue to receive good charters. Keppel is proud to be able to support Bumi with our conversion solutions that are cost-effective, robust and reliable," added Chia.

Bumi Armada shares closed unchanged at 70 sen today, with a market capitalisation of RM4.11 billion.