Keppel has announced that it has entered an agreement with Shell to establish a joint venture company in Singapore, which will focus on providing LNG bunkering services.
Specifically, Keppel Corp. Ltd (KCL) announced that a wholly-owned subsidiary of Keppel Offshore & Marine Ltd – KS Investments Pre Ltd (Keppel) – has entered into a shareholders agreement with a wholly-owned subsidiary of Royal Dutch Shell – Shell Eastern Petroleum (Pte.) Ltd (Shell). The agreement is for the creation of a Singapore incorporated joint venture (JV) company, which Shell and Keppel will both hold a 50% share in.
The JV will develop an LNG bunkering business in Singapore. It will provide the service to a number of different marine vessels.
Keppel claims that the transaction will not have a material impact on the net tangible assets and earnings per share of KCL for the financial year ending 31 December 2016.
Edited from press release by David Rowlands