Keppel Offshore & Marine signed a memorandum of understanding (MOU) with PEMEX Exploración y Producción (PEP) and PMI Norteamérica, S.A. de C.V. (PMI) to jointly develop, own and operate a yard facility in Mexico specializing in construction, maintenance, and repair of platforms and other larger vessels. The signing took place on October 3 at the Ministry of Affairs in Singapore.
Additionally, PMI and Keppel intend to establish a joint venture company (PMI-KOM JVC) to be the principal investment vehicle through which both parties would cooperate in various business opportunities that may be agreed upon. The yard will be located in the Port of Altamira, in Tamaulipas state.
The total yard development cost will be around US$400 million, with the first phase estimated at about US$150 million.
Under the MOU's first phase, Keppel will construct six KFELS B class jackup drilling rigs for PEP through their subsidiary Offshore Technology Development. KFELS B class jackup rigs operate in water depths of 400ft, with a drilling depth of 30,000ft.
Subsequent phases of the yard development would enable it to take in deep-draft semisubmersibles and drillships for repairs, undertake FPSO and floating liquefied natural gas (FLNG) vessel conversions, as well as fabricate topside modules and other offshore structures. When all the phases are completed, the yard is expected to create up to 4,000 new direct jobs for the local community.
"This MOU highlights PEMEX's commitment to increase oil and gas production in the long term by developing a sustainable offshore and marine industry in Mexico that can readily meet our needs. By partnering with the world's leading rig builder, Keppel, we are confident that the shipyard will be a success and help to provide a wide array of solutions for the production of oil and gas,” said Emilio Lozoya, CEO of PEMEX.
Lozoya said that Mexico had almost 14 billion boe at the start of 2013 and believes that a significant number of shallow and deepwater drilling rigs as well as FPSOs and FLNGs will be required to maximize production in the years to come.
The memorandum was signed by Carlos Morales Gil, general director of PEP, and Jose Manuel Carrera Panizzo, CEO of PMI, as well as Chow Yew Yuen, CEO of Keppel Offshore & Marine.
Image shows the KFELS B design.