03 Jul 2013

Keppel FELS secures order for jackup rig worth about US$210 million

Keppel FELS Limited (Keppel FELS) is pleased to announce that PV Drilling Overseas (PVDO) is acquiring from the company a KFELS B Class jackup rig for approximately US$210 million.

Scheduled for delivery in 1Q 2015, the high specification rig will be the 19^th KFELS B Class rig on order at Keppel, with 45 already delivered since 2000.

Mr Pham Tien Dung, Chairman of PVDO and CEO of PV Drilling said, "We are looking to catch up on the huge demand for offshore rigs and actively seize the opportunities coming. To meet this aim, we are pleased to be able to acquire a premium jackup rig with such an early delivery schedule. This is an important addition to our current fleet of rigs to expand our fleet through acquisitions and charters to accelerate our drilling programme for Vietnam and the overseas market."

The KFELS B Class jackup design was developed by Keppel's technology arm, Offshore Technology Development. It is able to operate in water depths of 400 feet, drilling depth of 30,000 feet and accommodate up to 150 men.

Mr Wong Kok Seng, Managing Director (Offshore) of Keppel O&M and Managing Director of Keppel FELS said, "We are pleased to provide PVDO with a KFELS B Class jackup rig to suit their schedule. Even though we have a number of deliveries slated for 2015, our construction programme allows us the flexibility to meet our customer's requirements.

"Having just delivered our 45^th KFELS B Class rig, and with another 19 on order, this proven design has been the rig of choice for the offshore drilling industry. We look forward to providing PVDO with a high quality rig on time, on budget and in a safe manner."

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. It 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.

The new contract 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.

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About PVDO
PV Drilling Overseas (PVDO) is a company engaged in drilling services. PVDO's largest shareholder is PetroVietnam Drilling and Well Services Corporation (PV Drilling).

The experiences of PV Drilling can be traced back to the establishment of PTSC Offshore Services, as a division of Petroleum Technical Services Company, in 1994. After a decade of development, PV Drilling has quickly expanded its portfolio of services to include drilling, manpower provision, well services, tubular inspection and other activities related to a drilling campaign. These services remain at the heart of the company and play an important role in the development of PV Drilling as a major service provider to the oil and gas industry in Vietnam.

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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