Keppel FELS Limited (Keppel FELS) has secured a contract worth about $210 million from Japan Drilling Company (JDC) to build a KFELS Super B Class jackup rig.
Slated for delivery in the first quarter of 2013, the rig will be JDC's first newbuild rig order in six years and Keppel FELS' first for JDC.
Mr Wong Kok Seng, Managing Director of Keppel FELS, said, "JDC has been very specific with the requirements from their new jackup building programme. We are honoured that they have selected our proven KFELS Super B Class design to be customised to their needs. This is a win-win partnership that demonstrates the strength of our proprietary designs.
"The KFELS Super B class rig has a highly successful operating track record in many parts of the world. And as with all our projects, we aim to deliver this latest unit safely, on time and within budget to JDC."
Mr Yuichiro Ichikawa, Representative Director and Senior Managing Executive Officer of JDC who is currently visiting Keppel FELS, said, "We plan to further expand our business operations globally and strengthen our offshore fleet to address the diverse needs of our customers. The utilisation of our existing rigs is currently at an optimal level and we believe that the KFELS Super B class will be an important addition to boost our capabilities and offerings to customers.
"Through earlier repair projects, we have witnessed Keppel FELS' deep commitment to quality, safety and delivery excellence. We are glad to have found a likeminded partner in Keppel, and look forward to working closely with them to complete an outstanding drilling unit that fits our exacting requirements."
The KFELS Super B Class design is one of the world's deepest drilling rigs with drilling depth of 35,000 ft. This rig's leg structure is uniquely designed to provide enhanced robustness for operations at 425 ft water depth. The rig is engineered to operate in high ambient temperatures and can accommodate 150 personnel onboard. It features an offline stand building capability to handle drill pipes efficiently, a combined drilling load of up to 2,700 kips and a high capacity hook load of 2 million pounds, boosting overall rig performance and productivity.
Keppel FELS previously completed two KFELS B Class jackup rigs for a JDC joint venture company with Qatar Petroleum, Gulf Drilling International Ltd.
To date, 33 KFELS B Class and Super B Class rigs have been delivered for operations in various parts of the world.
The above contract is not expected to have any material impact on the net tangible assets or the earnings per share of Keppel Corporation Limited for the current financial year.
A returning customer to Keppel, JDC had previously sent its rigs, Hakuryu-5 and Hakuryu-3, for repair and maintenance at Keppel AmFELS and Keppel FELS respectively.