05 Apr 2005

Keppel FELS secures rig order from repeat customer ENSCO

Keppel FELS Ltd, the wholly owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has secured from regular customer ENSCO International Inc (ENSCO) an order to build a KFELS B Class jackup rig for US$ 117.2 million.

The rig will be a replacement for ENSCO 64, which was heavily damaged by Hurricane Ivan in September 2004.

To be named ENSCO 108, the rig is due for delivery in the first quarter 2007.

It is the sister rig to ENSCO 106, now operating in Australia, and ENSCO 107, which Keppel FELS is expected to deliver in late 2005.

Mr Michael Chia, Executive Director of Keppel FELS, said, "We have been in discussion with ENSCO for some time now on this project, and we are glad to seal the contract with our long time partner and friend."

Apart from the contract, the Keppel O&M Group also undertakes several other projects for ENSCO. They include three major refurbishment and life extension jackup rig projects, which will be executed by Keppel AmFELS. Keppel FELS is currently carrying out a significant upgrading and life extension project for ENSCO.

"We are extremely glad ENSCO continue to choose us to be their preferred solutions provider in the expansion, renewal and upgrading of their fleet of rigs.

"ENSCO 108 is the seventh consecutive jackup rig that they are building with us since 1999. All these seven rigs are premium jackups of KFELS design.

"I am happy to note that the rigs fetch one of the best daily rates for their owner in every location that they are being deployed," Mr Chia added.

The world leader in jackup rigs, Keppel FELS is also a wholly owned subsidiary of Keppel Corporation, through Keppel O&M.

Keppel O&M is the global leader in offshore rigs and shiprepair and conversion as well as a specialised shipbuilder. Its near market, near customer strategy is bolstered by a global network of 16 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.

The transaction is not expected to have any material impact on the NTA or the net earnings per Keppel Corporation share for FY2005.

For further information, please contact

Sarah Seah (Ms)
Deputy General Manager
Group Corporate Communications
Keppel Corporation
Tel: +65 64136 420
Email: sarah.seah@kepcorp.com

Attachments:

The ENSCO 106 (seen here) was delivered ahead of schedule in February 2005. The ENSCO 108 will be the seventh consecutive jackup rig ENSCO is building with Keppel O&M since 1999.