07 Jul 2008

Keppel to build Scorpion’s first semisubmersible for US$405 million

The Group’s proprietary DSS 38 design gains momentum in Brazil’s offshore market.

Keppel FELS Limited (Keppel FELS), a wholly owned subsidiary of Keppel Offshore & Marine Limited (Keppel O&M), has been contracted to build its proprietary DSS 38 deepwater semisubmersible (semi) rig for Scorpion Offshore Ltd (Scorpion).

The contract with Scorpion is subject to the fulfillment of certain conditions by mid July 2008. It is valued at US$405 million. The amount excludes owner-supplied drilling and subsea equipment.

Upon its completion in the fourth quarter of 2011, this semi will be chartered by Scorpion to Brazilian national oil company Petrobras for a period of six years.

“The DSS 38 model was developed from our years of experience as a rigbuilder and keen understanding of operating requirements in the deepwater region bordered by Brazil, West Africa and the Gulf of Mexico.

“It is significant that Scorpion has entrusted Keppel to build this premium design as its first semi for Petrobras. This demonstrates the growing recognition of our DSS 38 model as a choice deepwater rig for offshore Brazil.

“We look forward to strengthen our partnership with Scorpion with this high quality rig,” said Mr Tong Chong Heong, Managing Director & Chief Operating Officer of Keppel O&M.

The DSS 38 is rated to drill to depths of 30,000 feet below mud line in just over 9,000 feet water depth. With operational displacement of approximately 38,000 tonnes, the DSS 38 has housing facilities for a crew of up to 130 men. It has both vertical and horizontal riser storage. The eight 3000kW azimuth thrusters configuration are designed to keep the vessel in position. All configurations comply with the American Bureau of Shipping Dynamic Positioned System (DPS-2) requirements.

With the latest rig, Keppel FELS will be constructing three DSS 38 rigs including two units for Queiroz Galvao, three DSS 21 rigs for Maersk Contractors and one DSS 51 rig for Transocean. Designed by Keppel O&M’s Deepwater Technology Group and Marine Structures Consultants of the Netherlands, the first DSS series semisubmersible, Maersk Explorer, began operations in 2003.

Scorpion Offshore Ltd. is a Bermuda based corporation founded in 2005 to own and operate state-of-the-art offshore drilling rigs. A repeat customer, Scorpion has engaged Keppel AMFELS, a wholly-owned subsidiary of Keppel O&M in Texas, to build five jackup rigs since 2005. Three of the jackups have been delivered and are being deployed in Oman, Vietnam and Brazil.

Keppel FELS is a wholly-owned subsidiary of Keppel Corporation Ltd through Keppel O&M, a leader in offshore rigs, ship repair and conversion and specialised shipbuilding. Its 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.

The above 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.

For further information, please contact

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

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A compact fifth generation rig design, the DSS 38 has an enhanced deck load capacity and a user-friendly layout. This cost-effective rig is suitable for deepwater operations in Brazil, West Africa and the Gulf of Mexico.