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Sembawang Shipyard, a subsidiary of Sembcorp Marine, has secured a contract worth approximately S$600m ($480m) from Saipem for the conversion of two floating storage production offloading (FPSOs) for the Kaombo project offshore Angola.

The contract includes refurbishment of two very large crude carriers (VLCCs), construction engineering, fabrication of flare, helideck, upper turret and access structure.

Sembawang will integrate the topsides modules and lower turret components, as well as pre-commission the FPSOs.

The first VLCC, Olympia, is expected to enter the yard during the third quarter of 2014 while the second VLCC, Antartica, will arrive in the first quarter of 2015.

Total owns the two converted vessels, which will have an oil treating capacity of 115,000bpd and a storage capacity of 1.7 million barrels of oil.

"We are fully committed to work closely with all partners involved in this milestone project for a successful outcome."

The units will also have a water injection capacity of 200,000bpd and a 100 million standard cubic feet per day gas compression capacity.

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Sembawang Shipyard managing director Ong Poh Kwee said: "We are fully committed to work closely with all partners involved in this milestone project for a successful outcome.

"The buoyant offshore market offers exciting opportunities for both the Shipyard and owners, and we look forward to a long-term collaborative partnership with Saipem."

The Kaombo offshore development is based on the use of the hybrid loop technology for multiphase pumping and transport of fluids.

Total is the operator with a 30% stake in Block 32, while Sonangol and China Sonangol Petroleum each own 20% interest.

Exxon holds 15% while Marathon Oil and Galp own 10% and 5% shares respectively.