Singapore’s Keppel Offshore & Marine is negotiating two floating production, storage and offloading vessel contracts with Brazil’s state-owned Petrobras which, if awarded, would add more than S$8 billion (US$5.8 billion) to the contractor’s order book.

The Singapore offshore and marine company was the only qualified bidder in Petrobras’ tender for its P-80 FPSO and it is currently in advanced discussions for this floater job, as well as for an option for a second FPSO. Both these FPSO projects will have milestone payments with a 10% deposit upfront from the client when the contracts are executed.

In the first half of 2022, Keppel O&M was profitable — achieving stronger results driven by the higher revenue, higher investment income and gains from its disposal of Keppel Smit Towage and Maju Maritime.

The outlook for the offshore and marine industry is expected to improve on the back of increased oil prices, noted the contractor.

Keppel O&M in the first half of this year secured S$256 million-worth of new orders including an FPSO module fabrication and integration, an FPSO topsides integration, and the jumboisation of a trailing suction hopper dredger, boosting its net order book to US$4.4 billion (S$11.49 billion gross) as of 30 June.

Against this backdrop, work to complete the contractor’s merger with compatriot Sembcorp Marine is “progressing well” for targeted completion by the end of the year, Keppel Corporation chief executive Loh Chin Hua said on Thursday.