Keppel Shipyard and Keppel Singmarine have jointly secured contracts worth a total of SGD368m ($295m).

Keppel Shipyard’s contract is for the conversion of a FPSO vessel for Armada Kraken, wholly-owned by Malaysia’s Bumi Armada.

Work has commenced and the FPSO is scheduled for delivery in the third quarter of 2015.

“We are seeing an increasing demand for more sophisticated FPSOs which can operate in harsher environments, more challenging and deeper oil and gas fields,” said Michael Chia, managing director (marine & technology), at Keppel Offshore & Marine, parent firm of Keppel Shipyard and Keppel Singmarine.

When completed, the FPSO will be capable of producing the heavy oil (API degree 14) in the Kraken field, UK sector of the North Sea, over a period of 25 years.

Keppel Singmarine, on the other hand, has secured a contract from Baku Shipyard to design and carry out fabrication and outfitting works for a subsea construction vessel (SCV) which will be deployed in the Azerbaijan sector of the Caspian Sea.

Baju Shipyard was jointly developed by Keppel O&M, State Oil Company of Azerbaijan Republic and Azerbaijan Investment Company.