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Keppel AmFELS on Course for Delivery of Jackup Rig

Maritime Activity Reports, Inc.

November 7, 2006

Keppel AmFELS Inc., is expected to deliver the first of its five jackup rigs on time and within budget for Scorpion Offshore Ltd. Keppel AmFELS launched the premium rig Offshore Courageous on November 4, 2006, which marked the completion of the hull works, a major milestone in its construction of the jackup.

Ho Cheok Yuen, President and CEO of Keppel AmFELS, said, “We are committed to our delivery schedule for Offshore Courageous, and I am pleased that we are progressing as planned for our first rig for Scorpion Offshore. The other four Scorpion rigs are named Offshore Defender, Offshore Resolute, Offshore Vigilant and Offshore Intrepid. All five rigs are built to the LeTourneau Super 116 design, with leg lengths of 477 ft. Suited for both international operations as well as deep gas drilling in the Gulf of Mexico, the rigs are capable of drilling down wells of up to 30,000ft in water depths of 350ft.

Apart from the five Scorpion rigs, Keppel AmFELS is also constructing a sludge vessel for the City of New York; a KFELS Super B Class jackup rig Ocean Scepter for Diamond Offshore; and a LeTourneau Enhanced S116 jackup rig Atwood Aurora for Atwood Oceanics. Other ongoing repair and refurbishment projects include the semisubmersible drilling rig Ocean Saratoga for Diamond Offshore, the semisubmersible drilling rig Kan Tan IV for Beijing Zhiyuan Industries Company and managed by Maersk Contractors, and jackup rigs Pride Oklahoma and Pride Tennessee for Pride Offshore.

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