23 Nov 2009

Keppel to upgrade and repair 2 Noble drillships for US$304 million in Brazil

New jobs will create base load of work stretching into 2012 for BrasFELS yard.

Keppel Offshore & Marine Ltd (Keppel O&M), through its subsidiary, Keppel FELS Brasil, has secured contracts from Noble Corporation (Noble) to upgrade and repair two of Noble's Brazil-based drillships for US$304 million (S$421.6 million).

The scope of work covers the fabrication, repair and replacement of components, including the stern section, accommodation blocks, sponsons and heliport.

Work on the drillships, Noble Leo Segerius and Noble Roger Eason, will be done sequentially at Keppel’s BrasFELS yard in Angra dos Reis, beginning with the arrival of the first drillship by early 2011. The two deliveries are scheduled between the last quarter of 2011 and the first half of 2012 respectively.

Meanwhile, both parties are in advanced talks on the upgrading of a third Brazil-based drillship operated and majority-owned by Noble.

Mr Tong Chong Heong, CEO of Keppel O&M said, “Keppel O&M's network of global yards continues to advance the Group as the choice partner for the building, repair, upgrading and completion of offshore vessels across the world.

“We are greatly encouraged that Noble has chosen to work with Keppel FELS Brasil again. We hope to deepen this valued relationship and affirm their trust in our commitment to deliver the projects safely, on time and within budget.”

When completed, Noble Leo Segerius and Noble Roger Eason will be deployed offshore Brazil to meet the requirements of Petrobras’ extensive drilling plans.

BrasFELS has recently completed the upgrade of semisubmersible the Noble Paul Wolff and is currently assisting Noble with the final stages of the Company's Noble Dave Beard, which arrived in Brazil earlier this year.

Mr Tong added, “We have been equipping the BrasFELS yard and training our workers to take on more sophisticated jobs over the years, transferring expertise, technology and systems from our Singapore yards to Brazil.

“As a result, our BrasFELS yard is today the most comprehensive offshore and marine facility in Latin America, and has been able to help to meet Brazil’s requirements for greater local content.

“I am confident that we have prepared our BrasFELS yard well to participate meaningfully in the new jobs from Petrobras and drillers operating in Brazil and the region.”

Keppel FELS Brasil is a wholly owned subsidiary of Keppel Corporation, through Keppel O&M, a leader in the design and construction of offshore rigs, ship repair and conversion and specialised shipbuilding.

Keppel O&M’s 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.

Noble is a leading offshore drilling contractor for the oil and gas industry. Noble performs, through its subsidiaries, contract drilling services with a fleet of 62 offshore drilling units (including five rigs currently under construction) located worldwide, including in the Middle East, India, the U.S. Gulf of Mexico, Mexico, the North Sea, Brazil, and West Africa.

The contracts are not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation for the current financial year.

Attachments:

Noble Roger Eason is scheduled for completion in 1H2012, and like Noble Leo Segerius, has been chartered to Petrobras.

Upgrading works on the first drillship, Noble Leo Segerius, is expect to complete in 4Q2011.