27 Feb 2013

Keppel FELS adds US$300 million to order book with new contracts

Keppel FELS Ltd (Keppel FELS), a wholly-owned subsidiary of Keppel Offshore & Marine (Keppel O&M), has secured three contracts worth a combined US$300 million from repeat customers.

The contracts are for the construction of a KFELS B Class jackup rig from Star Drilling Pte Ltd, a Singapore-based company promoted by the companies of D.P. Jindal Group; the upgrading of the semisubmersible ENSCO 5006 for Ensco PLC (Ensco); and the upgrading of the semisubmersible Ocean Patriot for Diamond Offshore.

Mr Wong Kok Seng, Managing Director (Offshore) of Keppel O&M and Managing Director of Keppel FELS said, "We are glad to be able to continue from 2012 into 2013 by adding more contracts to our orderbook. Even as we add to our new orders, we continue to deliver our projects safely, on time and on budget. Just over the last two months, we delivered four newbuild rigs by up to a month ahead of schedule.

"We are honoured to have returning customers come to us for newbuilds as well as repairs and upgrades. With Jindal, this will be their third KFELS B Class jackup rig. We have to-date delivered ten such rigs to Indian customers and look forward to supporting Jindal and their growth in India's oil and gas market. At the same time, we also have a healthy load of repair and upgrade work and we are grateful that customers like Ensco and Diamond have regularly sent their rigs to us for repairs, upgrades and modifications."

For the contract with Jindal, the jackup rig will be built to Keppel's proprietary design and customised to meet the owner's operational needs in water depths of up to 350 feet for deployment in offshore India. The rig will have a drilling depth capability of 30,000 feet. Delivery of the rig is scheduled for 4Q 2014.

Mr Raghav Jindal, Managing Director of Jindal, said, "India is enlarging its sphere in the global oil and gas industry and pushing to reduce its dependence on oil imports. These factors present tremendous opportunities for exploration and production activities and Jindal is well positioned with high specification rigs to meet this demand. In particular, this new rig order signals our intention to enhance our presence in the sector. The KFELS B Class is a proven design for us as both DISCOVERY I and VIRTUE I jackup rigs have been operating successfully without any downtime in offshore India. We are pleased to be able to work with Keppel FELS again as we can be assured of receiving a high quality rig on time and to our highest satisfaction."

The D.P. Jindal Group of companies has business interests in the oil and gas sector and provides offshore drilling services as well as manufacturing of seamless & ERW pipes.

For the contract with Ensco, Keppel FELS' major workscope on the ENSCO 5006 includes upgrading of the living quarters, and other contract-specific upgrades for operating in Australia on the INPEX Ichthys Project.

The vessel is expected to arrive at the yard in 1Q 2014 with redelivery in 2Q 2014, after which it will be chartered to INPEX for work in Australia.

For the contract with Diamond Offshore on the Ocean Patriot, Keppel FELS will undertake the fabrication and installation of four 24-foot diameter stability columns and new lower hull inboard pontoon sponsons as well as upgrade the living quarters.

Work on Ocean Patriot is expected to commence in June 2013 with redelivery at end 2013. When completed, the semisubmersible will be chartered to Shell for work at the Fram field in the UK North Sea.

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

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About Jindal
Jindal Drilling & Industries Ltd. (JDIL) an ISO 9001:2008 Company, is a part of D. P. Jindal Group, one of India's most respected, diversified and leading Industrial House with revenues exceeding US $800 Million, employing more than 3000 people. JDIL was incorporated in the year 1983 with a focus on providing quality Offshore Drilling and allied services.

Jindal is among the pioneers in India who ventured into the high technology area of Offshore Drilling and over the last two decades has emerged as one of the major players in Indian Oil & Gas Industry providing high quality services and performance to the entire satisfaction of clients. Currently they are operating four jackup rigs all on long term contract with M/s Oil & Natural Gas Corporation Ltd. (ONGC).

About Ensco plc
Ensco plc (NYSE: ESV) brings energy to the world as a global provider of offshore drilling services to the petroleum industry. For more than 25 years, the company has focused on operating safely and exceeding customer expectations. Ensco is ranked #1 for total customer satisfaction with top honors in 10 of 16 categories in the latest annual survey by EnergyPoint Research. Operating the world's newest ultra-deepwater fleet and largest fleet of active premium jackups, Ensco has a major presence in the most strategic offshore basins across six continents. To learn more about Ensco, visit www.enscoplc.com

About Diamond Offshore
Diamond Offshore provides contract drilling services to the energy industry and is a leader in deepwater drilling. Diamond Offshore's fleet of offshore drilling rigs consists of 32 semisubmersibles, 13 jack-ups, and one drillship, in addition to three ultra-deepwater drillships currently under construction. For additional information and access to SEC filings, please visit Diamond Offshore's website at www.diamondoffshore.com

About Keppel FELS
Keppel FELS is a subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), a wholly-owned company of Keppel Corporation Limited. Keppel FELS is a leading designer, builder and repairer of high-performance mobile offshore rigs. Its portfolio of proprietary designs and floating production solutions meets a broad spectrum of operating requirements, including deep waters and harsh environments.

As a group, Keppel O&M is also a leader in ship repair and conversion, and specialised shipbuilding. Its near market, near customer strategy is bolstered by a global network of 20 yards and offices in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be the provider of choice and partner for solutions for the offshore and marine industry. For more information on Keppel FELS, visit www.keppelfels.com

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