Keppel FELS Delivers First Rig of 2010

Thursday, January 21, 2010

Keppel FELS Limited (Keppel FELS) has delivered Ensco 8502, the third of seven Ensco 8500 Series semisubmersible (semi) drilling rigs it has been contracted to build exclusively for Ensco International (NYSE:ESV).

Delivered seven days ahead of schedule, Ensco 8502 is on track to commence operations in the U.S. Gulf of Mexico in the second quarter of 2010, under a two-year contract with Nexen Petroleum U.S.A. Inc. with term extension options.

The early completion was a culmination of progressive productivity gains achieved by Keppel FELS on the construction of the Series.

Construction lead time for Ensco 8502 was reduced by 1.1 million man-hours, as compared to the first rig in the Series. This represents a 15% boost in efficiency.

When the Ensco 8500 Series is completed, Keppel-built rigs will make up 30% of the leading driller’s premium fleet. Construction of the next four rigs remains on schedule with expected deliveries extending from the fourth quarter of 2010 into 2012.

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