Conglomerate Keppel Corp.'s offshore and marine unit signed a shareholders' agreement with Russian oil firm Rosneft and Norwegian drilling equipment firm, MHWirth, to set up a Singapore-incorporated joint venture (JV) company.

The company will establish a design and engineering center in the Russian Federation, with initial projects from Rosneft for work related to shallow-water platforms, Singapore's Keppel Offshore and Marine said in a statement late on May 19.

It will also seek work from other Russian and international customers.

Keppel O&M and Rosneft will have shares of 45% each in the JV, while MHWirth will hold 10%. The JV and the center will adhere to existing U.S. and EU sanctions imposed on the Russian offshore oil and gas sector, it said.

The deal comes as Singapore's Prime Minister Lee Hsien Loong makes his first bilateral visit to Russia.