Keppel Delivers 3rd Jackup Rig

Thursday, January 22, 2009

Keppel FELS Limited (Keppel FELS) has delivered the third of four high efficiency jackup rigs to Maersk Drilling (previously Maersk Contractors), on time and incident-free.

The rig was named Mærsk Resolve, by Mrs. Sun-hee Madsen, spouse of Mr Erik Madsen, Maersk Drilling’s Site Manager (Overall Projects), at a ceremony today.

“Keppel FELS looks forward to deliver as many as 14 rigs in 2009. The timely delivery of Mærsk Resolve without lost-time incidents is a good head start for us. We would like to thank our valued partner, Maersk Drilling, for their confidence and support, which have made this feat possible,” said Mr. Tong Chong Heong, Keppel O&M’s newly appointed CEO.

The series of high efficiency rigs have a maximum operating depth of 350 feet and are suitable for drilling deep, high temperature/ high pressure wells of 30,000 feet. They are also highly automated for safe operations.

The first rig, Maersk Resilient, was delivered in February 2008 and has commenced operations for Dubai Petroleum Establishment. The second rig, Mærsk Resolute, was delivered in August 2008 and has been contracted to Dong Energy for operations in the Danish part of the North Sea over three years. Meanwhile, the fourth and last jackup rig of this fleet is on-track for delivery in 2Q2009.

“The fundamentals in the offshore oil and gas industry remain intact. There is a need for drilling and production activities to support long term demand for energy. Keppel is committed to support efforts to meet this demand, and we will work closely with customers such as Maersk Drilling to pursue projects to meet operators’ needs.

“Looking ahead, our healthy balance sheet and orderbook of $7.2b will keep us very busy for the next few years. As we selectively pursue new projects in the year ahead, we are determined to further strengthen our project execution and increase productivity,” said Mr. Tong.

“These will ensure that we continue to deliver on our commitments on time, within budget and without incidents, all of which are just as, if not more important in the current market,” he added.

Maersk Drilling is a significant drilling contractor and supplier of floating production solutions. It has a fleet of 26 drilling rigs including one high efficiency jack-up rig and two deepwater development semi-submersibles currently under construction at Keppel FELS.

Keppel FELS has recently delivered the Mærsk Developer, the first of three semisubmersibles to Maersk Drilling. This rig has been contracted to Statoil for operations in the Gulf of Mexico. Maersk Drilling is part of the A.P. Moller – Maersk Group.

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