29 Mar 2011

Keppel receives US$8 million from QGOG for early delivery of Alpha Star

Keppel FELS Limited (Keppel FELS) has delivered Alpha Star, the second of two DSS^TM 38 semisubmersible rigs, to Brazil's Queiroz Galvão Óleo e Gás (QGOG) four months ahead of schedule and with zero lost time incidents.

This continues Keppel FELS track record of delivering its rigs on time or ahead of schedule. It is the third early delivery this year, following the early delivery of the semisubmersible drilling tender, West Jaya, to Seadrill and of the KFELS N Class rig, Rowan Stavanger, for Rowan Companies.

Mr Tong Chong Heong, CEO of Keppel Offshore & Marine, said, "This is our second safe and early delivery to QGOG and a sterling record for our company. This outstanding achievement is a demonstration of the great teamwork and synergy we have built with QGOG. It brings to fore the excellence of our efficient processes, project management, innovative methods and the Can-Do spirit which we apply on all our projects.

"We are glad to be able to send Alpha Star off early to contribute to Brazil's exploration and production efforts, enabling QGOG to anticipate its service from Petrobras. Our philosophy is to provide maximum value to our customers and we look forward to supporting QGOG as they expand their foothold in the deepwater drilling segment."

The rig has been chartered by Petrobras for six years to support exploration and production activities offshore Brazil.

Mr Leduvy Gouvea, Chef Executive Officer of Queiroz Galvão Óleo e Gás said, "With this early delivery, we are able to start work earlier for Petrobras, and reinforce our status as the premier drilling operator in Brazil. We are confident that Alpha Star will be just as successful as its sister rig, the DSS^TM 38 Gold Star, which is performing successfully for Petrobras in Brazil.

"Through the various projects we have been working on, they have proven to be an exceptional partner, delivering projects which exceed expectations and enabling us to efficiently serve the fast-growing oil and gas exploration industry. They share our commitment to provide technologically advanced and high quality products to our customers in a reliable and safe manner."

Jointly developed and owned by Keppel's Deepwater Technology Group and Marine Structure Consultants, the DSS^TM 38 design is in the league of some of the world's most advanced drilling semisubmersibles.

DSS^TM 38 is rated to drill 30,000 feet below mud line in over 9,000 feet water depth. It has an operational displacement of over 38,000 tonnes and can accommodate 130persons. It also features both vertical and horizontal riser storage and is configured with eight 3,000 kW azimuth thrusters to keep the rig in position.

Designed to maximise uptime with reduced emissions and discharges, a DSS^TM 38 rig is well-suited to handle the operational requirements in the deepwater "Golden Triangle" region, which comprises Brazil, Africa and the Gulf of Mexico.

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About Queiroz Galvão Óleo e Gás

Queiroz Galvão Óleo e Gás (QGOG) is the largest Brazilian privately-held provider of drilling and production services contractor. Over the last 30 years of continuous operations, QGOG has built an unparallel reputation for excellence in onshore and offshore drilling services, achieving ISO 9001, 14001 and OHSAS 18001 certifications for its quality management, environmental and safety records and systems. As part of one of Brazil's largest industrial groups Queiroz Galvão, QGOG enjoys synergies with group companies such as Queiroz Galvão Exploração e Produção (QGEP), the oil and gas exploration and production arm, as well as with one of Brazil's leading construction and engineering firms, Construtora Queiroz Galvão S.A., one of the shareholders and the operator of the largest shipyard in the Americas.

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 O&M is a leader in offshore rig design, repair and construction, 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 further information, please contact:

Roy Tan
Assistant Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: (65) 6413 6421
Email: roy.tan@kepcorp.com