Baku: A new shipbuilding yard that is jointly developed by Keppel Offshore & Marine Ltd (Keppel O&M), State Oil Company of Azerbaijan Republic (SOCAR) and Azerbaijan Investment Company (AIC) was officially opened on Friday by President of Azerbaijan, H.E. Ilham Aliyev. Singapore’s Senior Minister of State for Trade and Industry, Lee Yi Shyan, also attended the inauguration ceremony of the new yard.
Named Baku Shipyard LLC (Baku Shipyard), the new 62-ha yard in Baku, Azerbaijan, is designed to undertake the construction of a wide range of specialised vessels and merchant ships including subsea vessels, anchor handling tug/supply vessels and multi-purpose offshore support vessels such as platform supply vessels, as well as tankers and cargo vessels. The yard also has ship repair and conversion capabilities.
Baku Shipyard adds to Keppel’s existing footprint in Azerbaijan where it has been operating the Caspian Shipyard Company (CSC), also a joint venture between Keppel O&M and SOCAR, since 1997.
Keppel O&M currently has 10% share in the new yard, while SOCAR and AIC own the remaining 65% and 25% respectively. Keppel O&M will be responsible for the management and operation of the yard.
Phase 1 of the yard was built at an estimated cost of $470m. When operating at full capacity, it is able to undertake up to 100 repairs and conversions per annum and is estimated to achieve an average annual steel output of 25,000 tons. Plans for Phase 2 include the construction of a graving dock with added facilities for offshore projects.
The yard is already in discussions on several potential new projects ahead of its opening, and has received two contracts worth about $50m in total – to construct one unit of 50-tonne bollard pull azimuth stern drive tug and one set of pontoons for a semisubmersible in conjunction with CSC.
Tong Chong Heong, CEO of Keppel O&M, said, “The new yard reinforces Keppel O&M’s Near Market, Near Customer strategy and enables us to unlock synergy in our Caspian operations. We are hence confident that our enhanced presence in Azerbaijan will place us in good position to capture more growth opportunities and contribute significantly to the region’s energy sector.” [23/09/13]
