03 Nov 2008

Keppel Singmarine completes Asia's first two icebreakers for the Arctic

Keppel Singmarine Pte Ltd (Keppel Singmarine) has completed Asia’s first two icebreakers, built for one of the harshest marine frontiers on Earth, the Arctic sea for valued client, LUKOIL-Kaliningradmorneft (LUKOIL).

Said Mr Charles Foo, Chairman of Keppel Singmarine, “This is the first time that icebreakers meant for the Arctic region are built in the tropics. It also marks Keppel Singmarine’s entry into the flourishing oil and gas market in the Arctic region.”

The second vessel was named Varandey by Mrs Lyudmila Velikova, wife of Mr Victor Velikov, Deputy General-Director of LUKOIL at a Russian-themed ceremony at Marina at Keppel Bay today. The first icebreaking vessel, Toboy, was delivered to LUKOIL in August this year.

Varandey will join Toboy in the Barents Sea of Russia where they will help forge passages through the ice for oil tankers plying the Varandey Terminal.

Both Varandey and Toboy are designed to work in the harshest environments, cutting through solid ice over 1.7m thick, equivalent to the height of a grown man, and operating in extreme temperatures as low as -45^oC.

According to the latest United States Geological Survey, it is estimated that the Arctic may hold as much as 90 billion barrels of undiscovered oil reserves and 1,670 trillion cubic feet of natural gas. This is equivalent to as much as 13% and 30% of the world’s total undiscovered oil and natural gas respectively.

Mr Foo said, “The increasing oil and gas exploration and production activities in the Arctic present tremendous opportunities for specialised and robust vessels such as the icebreaking vessels.

“Seizing this opportunity and in line with Keppel Offshore & Marine’s group strategy of ‘Near Market, Near Customer’, Keppel Singmarine embarked on a study of the offshore activities in the Arctic in order to build up our shipbuilding capabilities in ice technology.”

Its strategy paid off when Keppel Singmarine was awarded the contract from LUKOIL in 2006 to construct Asia’s first two icebreakers.

Mr Foo added, “This was a milestone for Keppel especially since we had secured the contract amidst strong competition from European yards, which have a long tradition in and strong infrastructure of related arctic technology.”

Icebreaking vessels have to work in extreme conditions, complying with strict operating standards to ensure performance and safety. Both Varandey and Toboy are built in compliance with the rules and regulations of the Russian Maritime Register of Shipping, and are customised in accordance with the owner’s stringent requirements and superior technical specifications.

Said Mr Victor Velikov, Deputy General-Director of LUKOIL, “The enthusiasm and competence displayed by Keppel Singmarine in building the two icebreakers are remarkable. It met our expectations with regards to technical solutions and workmanship. We look forward to strengthening our ties with Keppel Singmarine in the near future.”

Russia, with its huge reserves of oil and gas, has always been an important market for the Keppel Offshore & Marine (Keppel O&M) group. Its relationship with Russia dates back to the 70s when Keppel Shipyard and Keppel FELS serviced various owners in shiprepair and ship conversion, and offshore rig construction and repair respectively.

Keppel Singmarine is the specialised shipbuilding arm of Keppel O&M group, a wholly-owned subsidiary of Keppel Corporation Limited. Keppel O&M’s near market, near customer strategy is bolstered by a global network of 20 yards in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be the provider of choice and partner for solutions for the offshore and marine industry.

LUKOIL-Kaliningradmorneft is a subsidiary to LUKOIL Oil Company, a leading Russian oil company with main activities in oil and gas exploration and production and sale of petroleum products. LUKOIL-Kaliningradmorneft is engaged in marine towing, handling of crude oil and petroleum products, fabrication of mobile drilling rigs, production of LPG and marketing of LUKOIL-produced fuels and lubricants.

For further information, please contact

Grace Chia
Assistant Manager
Keppel Group Corporate Communications
Tel: +65 64136 434
Email: grace.chia@kepcorp.com

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Keppel Singmarine has completed Asia’s first two icebreakers, built for one of the harshest marine frontiers on Earth, the Arctic sea. Seen here is Varandey, which was named at a ceremony at Marina at Keppel Bay by Mrs Lyudmila Velikova, wife of Mr Victor Velikov, Deputy General-Director of LUKOIL.

Download - 'Making of Asia's First Icebreakers - video clip

The completion of the two icebreakers marks Keppel Singmarine’s entry into the flourishing oil and gas market in the Arctic region.

Varandey was named by Mrs Lyudmila Velikova (front row, second from right), wife of Mr Victor Velikov (front row, right), Deputy General-Director of LUKOIL at a ceremony at Marina at Keppel Bay today, accompanied by the management of Keppel and LUKOIL.