06 Dec 2008

Keppel FELS completes Jindal’s 2nd jackup ahead of schedule and incident-free

Keppel FELS Limited (Keppel FELS) is set to deliver a jackup rig ahead of schedule to Virtue Drilling, an associate company of India’s Jindal Drilling & Industries (Jindal).

Named in the presence of Guest-of-Honour, Dr Lee Boon Yang, Singapore’s Minister for Information, Communications and the Arts, the jackup rig VIRTUE I, has also achieved a clean safety record of about 2.1 million manhours worked without incidents.

“In its strive for excellence in technology innovation and project execution, Keppel Offshore & Marine plays an important role in showcasing Singapore’s capabilities as a world leader in the design and construction of offshore drilling rigs. The successful completion of VIRTUE I attests to the potential of strong collaboration between Singaporean and Indian companies,” said Dr Lee at the naming ceremony.

“I am confident that there will be many opportunities for Singapore and Keppel to support India in the exploration and production of its rich oil and gas reserves, as India continues to grow as an influential global player,” he added.

VIRTUE I is the second jackup rig Keppel FELS has completed for Jindal and has been contracted by India’s Oil and Natural Gas Corporation (ONGC) in the Indian Ocean for a period of five years. The first rig, DISCOVERY I was delivered in September this year, 49 days ahead of schedule and without incidents.

Mr Naresh Kumar, Managing Director of Jindal, said, “We are very pleased with the results of the strong collaboration between Jindal and Keppel on both our jackup rigs. DISCOVERY I left Keppel FELS and commenced operations for ONGC immediately without any downtime. The excellent performance of DISCOVERY I right from the start attests to the completion, quality assurance and operational readiness of rigs leaving Keppel FELS’ yards, which is of great value to rig-owners.

“With the successful completion of VIRTUE I, Keppel FELS has lived up to its reputation for timely deliveries that are within budget and without incidents. We look forward to taking delivery of VIRTUE I very shortly as she joins her sister rig in contributing to the growth of India’s offshore industry.”

Mr Choo Chiau Beng, Chairman and CEO of Keppel Offshore & Marine (Keppel O&M), said, “India is enlarging its sphere in the global oil and gas industry, with its total hydrocarbon resources estimated in the region of 28 billion tonnes, and the government’s push to expand the local sector to reduce its dependence on oil imports. These factors present tremendous opportunities for exploration and production activities, and augur well for supporting clusters in the long run.

“We are honoured that Jindal has given us opportunities to strengthen its offshore fleet with two jackup rigs of our proprietary KFELS B Class design. We look forward to build on this strong partnership between our companies to support India’s growth as a major contender in global oil and gas.”

Since the launch of the KFELS B Class design in 2000, Keppel FELS has received 33 orders for its proprietary jackup drilling rigs. VIRTUE I is the 25th unit of this design to enter the offshore market.

Over the last five years, Indian drilling contractors have ordered a total of nine KFELS B Class jackup rigs from Keppel FELS. The total contract value of these rigs amounts to US$1.5 billion and speaks of the confidence placed in Keppel’s proprietary design.

Made to meet the requirements of international waters and those of ONGC for work in offshore India, VIRTUE I is capable of operating in water depths of 350 feet and drilling down to 30,000 feet. Keppel’s advanced and fully-automated high capacity rack, pinion elevating system and self-positioning fixation system have been incorporated into the design.

Keppel FELS is a wholly-owned subsidiary of Keppel Corporation, through Keppel O&M, a leader in offshore rigs, shiprepair and conversion and specialised shipbuilding. Keppel O&M’s near market, near customer strategy is bolstered by a global network of 20 yards 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 in solutions for the offshore and marine industry.

Virtue Drilling Pte Ltd. is a part of the Jindal Group, one of India’s leading, most respected and diversified industrial houses with revenues exceeding US$750 million, employing more than 3,000 people. It 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 the Indian oil and gas industry providing the highest quality of services and performances to the satisfaction of customers. It is also one of the largest manufacturers of seamless and electric-resistant welded pipes in India.


For further information, please contact:

Ivana Chua
Assistant Manager
Keppel Group Corporate Communications
Tel: (65) 6413 6436
Email: ivana.chua@kepcorp.com

Attachments:

Download - Speech by Mr Choo Chiau Beng, Chairman and CEO of Keppel Offshore & Marine

Download - Speech by Dr Lee Boon Yang, Minister for Information, Communications & The Arts

Mr Tong Chong Heong, MD & COO of Keppel O&M and Mr Naresh Kumar, MD of Jindal Drilling & Industries celebrate the early and incident-free completion of Jindal's latest jackup rig.

VIRTUE I is the 25th KFELS B Class unit to enter the offshore market - (from left) Mr Naresh Kumar, MD of Jindal Drilling & Industries; Mrs Manju, Lady Sponsor; Guest-of-Honour Dr Lee Boon Yang, Minister for Information, Communications and the Arts; and Mr Choo Chiau Beng, Chairman & CEO of Keppel O&M, officiate at the rig's naming ceremony.

Guest-of-Honour Dr Lee Boon Yang tops off the successful completion of VIRTUE I.