23 Jan 2011

Keppel to build two jackups for Clearwater worth US$360 million

Keppel FELS Limited (Keppel FELS) has secured new orders from Clearwater Capital Partners, LLC (Clearwater) to build a pair of premium KFELS B Class jackup rigs at US$360 million.

The two high specification jackups are scheduled for delivery in 1Q 2013 and 2Q 2013 respectively.

As part of the agreement, Clearwater has options to build another two similar jackup units with Keppel FELS. If exercised, the options for the additional two rigs will bring the total contract value to above US$730 million.

Mr Rob Petty, Managing Partner and Co-Founder of Clearwater, said, "Confidence is rapidly returning to the offshore industry and we expect a fundamental recovery of the sector. There is a clear bifurcation in the jackup market with oil companies increasingly focused on new, high specification rigs for their projects. We have followed this market closely and chose Keppel FELS as our long term partner to help us execute our investment plans in the transition of the jackup market from old rigs to safer, more efficient rigs.

"Keppel FELS is the gold standard for quality, engineering, and building execution in terms of both time and budgets. Our wide ranging due diligence before placing these substantial orders consistently validated the Keppel team to be professional - from the initial discussions through the engineering design and contract placement. We look forward to this same degree of professionalism and precision all the way through to delivery."

Mr Wong Kok Seng, Managing Director of Keppel FELS, said, "We thank Clearwater for their confidence in Keppel FELS and look forward to nurture a win-win partnership with them.

"The KFELS B Class design is the industry standard for efficient and high grade performance; to date, 33 such units have been delivered for operations in various parts of the world. I am confident that when completed, the KFELS B Class jackups will provide outstanding value and returns on Clearwater's investment."

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

The new contracts with Clearwater are 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 Clearwater

Clearwater Capital Partners, LLC (Clearwater) is an investment firm founded in December 2001 and dedicated to investing in special situations across Asia, excluding Japan. Since inception Clearwater has invested over $2.5 billion in the Asia region and currently manages over $2 billion in assets across its four investment vehicles. Clearwater's multi-disciplinary team consists of more than 70 professionals based in six primary offices across Asia including a Singapore office with a 17 person team.

For more information, please visit: http://www.clearwatercapitalpartners.com.

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, shiprepair 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, please visit: www.keppelfels.com.

For further information, please contact:

Ivana Chua
Senior Manager
Keppel Group Corporate Communications
Tel: (65) 6413 6436
Mobile: (65) 9239 1423
Email: ivana.chua@kepcorp.com