KEPPEL Offshore & Marine will take over management of the Titan Quanzhou Shipyard (TQS) after its subsidiary, FELS Offshore, signed a deal with the yard and Titan Petrochemicals Group.
Located in Quanzhou in Fujian Province, TQS is one of the largest shipyards in China, occupying a total area of 110 hectares with 3,600m length of coastline.
The yard will undertake projects using Keppel’s proprietary designs under the 30-year agreement, which is renewable as mutually agreed.
Keppel said that, when completed, TQS would have four ultra-large and wide dry docks, including one of the largest modern-designed docks in China, which will enable it to convert double hull vessels such as Floating Production Storage and Offloading (FPSO) units.
Besides ship repair and conversion capabilities, the yard is also able to construct offshore rigs including jackups and semisubmersibles.
Commodities trading conglomerate Guangdong Zhenrong Energy (GDZR) is a major shareholder in Titan, which is a provider of logistics, transportation, distribution and marine services for petrochemical products in Asia.
This agreement is conditional on the completion of the on-going financial restructuring of Titan, which wholly-owns TQS, and the resumption of the trading of its shares on the Hong Kong Stock Exchange.
Keppel O&M chief executive Chow Yew Yuen said having the yard would enable it to serve the Chinese market with its full suite of products while satisfying demand for China-made products.
“This is further complemented by our other shipyard in China, Keppel Nantong, which undertakes specialised shipbuilding and offshore fabrication,” he said.
The company had experience in managing existing shipyards in Brazil, the Netherlands, USA and the Philippines, he said.
“Together with the strength of GDZR’s extensive connections and experience in China, and our expertise and established track record in the global offshore and marine industry, we are confident that this is a win-win partnership that will enable Keppel and Titan to become a major offshore solutions provider for China.”
Titan chairman Zhao Xu Guang said the partnership was a solid move to the company enhancing its presence in the offshore and marine business.
“I am confident that with Keppel managing this yard which has good development potential, we will be able to quickly build up the track record of the shipyard and deliver winning Keppel designs and products to Chinese oil and gas operators,” he said.
“Having studied the market, we believe there are a significant number of potential projects that this yard is capable of undertaking.”