Keppel forms joint venture to grow presence in Russia

Keppel Offshore and Marine has entered into a shareholders’ agreement with Russian national oil company, Rosneft Oil Company, and Norwegian drilling equipment firm, MHWirth, to set up a Singapore incorporated joint venture company.

The joint venture will be split by Keppel O&M, Rosneft and MHWirth 45 per cent, 45 per cent and 10 per cent respectively.

The joint venture plans to establish a wholly-owned design and engineering centre (DEC) in the Russian Federation. Its principal business activities will be in relation to the design and engineering of mobile offshore drilling units for shallow waters to cater to the region.

The DEC will have to adhere to the US and European Union sanctions imposed on the Russian offshore oil and gas sector in the conduct of its business and activities.

The initial projects undertaken by the DEC will be from Rosneft for design and engineering work related to shallow water platforms. It will also look to take on work from other Russian and international customers.