Sembcorp Marine has announced that Sembawang Shipyard has won a contract with France’s Saipem for the FPSO conversion of two VLCCs.

The contract is valued at close to $600m, and include refurbishment of the VLCCs, construction engineering, the fabrication of flare, helideck, upper turret and access structure, integration of the topsides modules and lower turret components, and pre-commissioning of the FPSOs. The first VLCC Olympia will enter the yard during the third quarter 2014 while the second VLCC, Antartica, will arrive in the first quarter of 2015.

After a project duration of 32 months the two converted vessels, which will be used offshore Angola, will have an oil treating capacity of 115,000 barrels per day, a water injection capacity of 200,000 barrels per day, a 100 million scfd gas compression capacity and a storage capacity of 1.7 million barrels of oil.

Ong Poh Kwee, managing director of Sembawang Shipyard, said: “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.”