Keppel Atwood Contract Takes Effect

Friday, March 03, 2006
Keppel AmFELS Inc. is pleased to announce that its contract with a wholly-owned subsidiary of Atwood Oceanics Inc. (Atwood) for the construction of a new jackup rig is now effective.

This contract follows the Letter of Intent signed between the two companies announced on 7 February 2006.

The rig, excluding Owner Furnished Equipment, is valued at US$110 million and is due for delivery in the third quarter of 2008.

Said Mr. Ho Cheok Yuen, President and CEO of Keppel AmFELS, “We are glad that Atwood recognises our ability to deliver solutions on time and on budget. I am certain that when delivered, this new rig will be a great addition to Atwood’s fleet of rigs.”

This new rig will be built to the LeTourneau Super 116E design, with leg lengths of 477 feet (and can be upgraded to 511 feet), and capable of drilling wells up to 30,000 feet deep in water depths of 350 feet.

Mr. John Irwin, President of Atwood Oceanics, said “Atwood and its affiliates are pleased to have the opportunity to work with Keppel AmFELS on this jackup project. Keppel AmFELS has a long established reputation as a strong shipyard with extensive experience in the construction of ultra-premium jackup drilling units.”

Located in Brownsville, Texas, Keppel AmFELS is one of the best-equipped offshore yards in the area, serving customers operating in the Gulf of Mexico and internationally. With this new rig, Keppel AmFELS is constructing a total of seven jackup rigs for Atwood, Scorpion Offshore and Diamond Offshore. The yard is also building two accommodation platforms for PEMEX and a sludge vessel for the City of New York and undertaking the repair works of four offshore structures.

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