Singapore company Keppel is to restructure its offshore & marine (O&M) division to focus more on renewable energy.
The move aims to create a slimmer, and more competitive Keppel O&M that is well-placed to support the energy transition, said the company.
Excluding its rig operation and development business, Keppel O&M will progressively transit to a developer and integrator role, focusing on design, engineering and procurement.
It will be people-light and asset-light, with fabrication work subcontracted to its eco-system of contractors, including other yards, Keppel said.
Keppel O&M’s yard operations will be streamlined, including repurposing or divesting part of its global network of yards.
At the same time, this part of the business will invest in capability building as it seizes new opportunities.
This will be done by seeking opportunities in floating infrastructure and infrastructure-like projects that can deliver predictable streams of cashflow.
This will include renewables projects such as offshore wind farms and solar farms, gas solutions, production assets and new energy solutions such as hydrogen and tidal energy.
It will collaborate with other Keppel business units and harness the synergies of the Group to provide diverse solutions for sustainable urbanisation, such as offshore and nearshore infrastructure and floating data centre parks, and also explore how Keppel O&M’s offshore rig technology can be repurposed for other uses.
Keppel Corporation chief executive and chairman of Keppel O&M Loh Chin Hua said: “The share of renewables and new energy solutions in the global energy mix has been growing rapidly, driven by environmental concerns as well as technological advancements and the declining cost of renewables.
“Natural gas, as a transitional fuel, is also projected to overtake oil as the world’s largest energy source in the years to come.
“To seize opportunities in this fast-changing environment, we are making bold and decisive moves to transform Keppel O&M to ensure that it remains relevant and competitive, and fully aligned to Keppel’s Vision 2030.
“We are also exploring inorganic options for the O&M business, but there is no assurance that any transaction will materialise.
“In the meantime, we believe that our organic restructuring of Keppel O&M will not only enhance its competitiveness, but also its attractiveness, if we were to undertake any inorganic action.”