Keppel FELS Signs Rig Agreement

Tuesday, January 20, 2004
Keppel FELS Limited (KFELS) has signed an agreement with a wholly owned subsidiary of the Skeie Group AS of Norway to build a rig for $126 million. To effect this agreement, financing for the construction of the rig must be completed by February 16, 2004. Construction of the rig is expected to be around 26 months. The rig to be built is a Keppel FELS MOD V B class enhanced jackup capable of operating in water depths of up to 350 ft. and deep drilling of down to 35,000 ft.. The owner has an option to order within the next six months an additional unit with the same technical specification as the first unit with price adjustment for currency fluctuations.

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