Keppel FELS Delivers Rig

Tuesday, March 12, 2002
Keppel FELS Limited, the world leader in the construction of jackup rigs, has successfully designed and built its first KFELS MOD V “B” class ultra premium jackup drilling unit. Built for Chiles Offshore Inc. (AMEX: "COD") (CHILES), Chiles Discovery is the benchmark for a new generation of ultra premium deep-well drilling rigs. Keppel FELS received an early delivery bonus for Chiles Discovery, a testament of its excellent project management and executing capabilities. The company was also awarded bonuses for good safety performance, as well as delivering a rig that exceeds its original design parameters. The Chiles Discovery showcases the design and engineering expertise of Keppel FELS and incorporates Keppel FELS’ proprietary advanced high-capacity rack and pinion elevating unit and self-positioning fixation system, both developed by Keppel FELS’ Offshore Technology Development division. At the rig’s christening ceremony this morning, Mr. Choo Chiau Beng, Executive Director of Keppel Corporation and Chairman of Keppel FELS said, “The design and construction of Chiles Discovery marks a significant milestone for Keppel FELS’ track record as the world leader in the construction of jackup rigs. “Chiles Discovery is the first unit of the KFELS MOD V “B” class design, an enhanced drilling unit able to exceed the operating capabilities of conventional non-harsh environment jackup rigs.” Built to the latest Classification Rules and Regulations, the KFELS MOD V “B” class design surpasses rigs of its size in terms of environmental ratings and load carrying capacity, making it suitable for deployment in remote access locations and the drilling of high temperature, high pressure deep wells. Chiles Discovery is the third rig the Keppel FELS Group has built for CHILES. Two other ultra premium jackup rigs were previously delivered on time and on budget to CHILES in 1999: Chiles Columbus and Chiles Magellan, which were both built by AMFELS, Keppel’s yard in Brownsville, Texas. Mr. William Chiles, President and Chief Executive Officer of CHILES said, “We are very pleased with the quality workmanship and outstanding project management of Keppel FELS. Chiles Discovery marks the launch of a new ultra premium rig design intended to replace the generation of jackups built in the 1970s. “It embraces digital technology and state-of-the-art information and communication systems. We believe, in the next three to five years, the demand for such high productivity jackups will increase.” The construction of Chiles Discovery took twenty-two months, and it will be deployed in the Bayu-Undan field in Timor Sea for Phillips Petroleum Company (91-12) Pty Ltd. Said Dr. Stephen Brand, President of Phillips Petroleum Company (91-12) Pty Ltd, “We are very excited about the Chiles Discovery and what it can do for us. With proven design and building capabilities of Keppel FELS and CHILES’ rich experience in deep well drilling, I am confident that this rig will perform beyond our expectations.”
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