Keppel FELS Limited (Keppel FELS), a wholly-owned subsidiary of Keppel Offshore & Marine (Keppel O&M) has secured a contract from an affiliate of Clearwater Capital Partners (Clearwater) to build a pair of premium KFELS B Class jackup rigs. The total cost of the project is about $440 million (USD), which also includes owner furnished equipment and project management fees. The rigs are scheduled to be completed in 4Q 2015 and 1Q 2016.
Wong Kok Seng, Managing Director (Offshore) of Keppel O&M and Managing Director of Keppel FELS said Keppel FELS has 49 KFELS B Class/Super B Class jackup rigs already delivered and 17 on order.
The KFELS B Class jackup rig is able to operate in water depths of up to 400 feet, drill to 30,000 feet deep and equipped with offline standbuilding capability. Developed by Keppel's technology arm, Offshore Technology Development, the KFELS B Class jackup design provides maximum uptime with reduced emissions and discharges.
Dr. Yao Chye Chiang, Singapore-based Chief Operating Officer of Clearwater said, "We continue to see strong demand for new high specification jackup rigs as the industry continues its rig replacement trend. Even with the number of new jackups entering the market this year, more than half the existing rigs will be older than 30 years by 2015."
The contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.