Keppel joins Frontline venture
Singapore’s Keppel Shipyard will be a partner in a new floating production venture to be formed by John Fredriksen’s tanker group Frontline. “Keppel Shipyard and Frontline intend together to subscribe to minimum 33% of the new equity,” Bermuda headquartered Frontline said today. Frontline is setting up a separate entity called Sea Production Ltd, to which external investors will be invited. Discussions are on to sell Frontline’s entire floating production activities to the new company. These include FPSO Front Puffin, which is currently under conversion at Keppel yard, which is also a partner in the project. Keppel, a world leader in jack-up rigs, also captured 28% market share in deepwater semi-submersible orders in 2006. Keppel Verolme in the Netherlands has recently expanded its capabilities to offshore conversions. Frontline is in discussions with Greenwich Holdings to purchase two double-side Aframax tankers for FPSO conversion and FPSO Crystal Ocean from Seadrill. Details of the new venture are expected to be finalised within a week.