Keppel FELS has secured an order for a KFELS B Class jackup rig worth US $180 million from Standard Drilling, a subsidiary of Norwegian investment company, Ferncliff TIH AS Group (Ferncliff).

As part of the agreement, Standard Drilling has been given options to build another two similar jackup units. If exercised, the options for the additional two rigs will bring the total contract value to about US $550 million.

The first rig is slated for delivery in 2H 2012.

Mr. Martin Nes, CEO of Ferncliff TIH AS, said, "We are seeing activities and opportunities in the jackup market recovering quickly and are positive that this demand for newer, safer, high-specification jackups will be sustained, given the growing need worldwide for premium units with capabilities to operate safely in more challenging locations.

"To create stable and long-term value for our stakeholders, we believe in working with partners with specialist expertise, good management and world leading technology, to develop our assets that will give a good foundation for future growth.

"Rigs built to the KFELS B Class design are known to be highly efficient drilling platforms with industry-leading features for safety and environmental friendliness and boast a proven track record. We are pleased to work with Keppel FELS on building a premium jackup drilling rig of this design, which we are confident, will become a first class asset to our portfolio."

Mr. Wong Kok Seng, Executive Director of Keppel FELS, said, "The innovative and cost-effective KFELS B Class jackup rig has proven itself to be the trusted, reliable workhorse of the industry, and has performed well in major offshore exploration and development programs in various locations.

"Including Standard Drilling's order, a total of 35 KFELS B Class rigs have been ordered to date. 32 of these have already entered the market and are constantly delivering excellent operational and safety performance for their operators."

Developed by Keppel's technology arm, Offshore Technology Development, the KFELS B Class jackup design provides maximum uptime with reduced emissions and discharges. For its environmental-friendly features, the KFELS B Class design was bestowed the Prestigious Engineering Achievement Award from Institution of Engineers Singapore in 2009.

Readily upgradeable to higher performance capabilities, KFELS B Class rigs incorporate Keppel's advanced and fully-automated high capacity rack and pinion elevating system, and Self-Positioning Fixation System. When completed, this rig will be able to operate in water depths of 400 feet, drilling depth of 30,000 feet and accommodate 120 men.

The above agreement is not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.

Tags: Keppel Offshore & Marine Limited