Keppel to Build Harsh Environment Jackups Worth $416M

Thursday, January 27, 2011

Keppel FELS Limited has secured a contract worth about $416m from Discovery Offshore S.A. to construct two harsh environment jackup rigs based on the proprietary KFELS Super A Class design. The rigs are scheduled for delivery in 1H and 2H 2013 respectively. The construction, marketing and operation of both units will be managed by NASDAQ-listed Hercules Offshore, Inc., which is a leading global operator of jackup and liftboat assets.

Discovery Offshore has options to order two additional jackup units as part of its contract with Keppel FELS. If exercised, the options for the additional units will bring the total contract value to above $840m. The new KFELS Super A Class brings together winning features of the company's proven jackup rig designs to provide operators with a viable and cost-effective solution for harsh environments and cold climate areas.

Mr Wong Kok Seng, Managing Director of Keppel FELS, said, "The KFELS Super A Class debuts at an opportune time when the industry is looking for newer and higher performance assets, which offer improved safety and better efficiency.

"This North Sea-compliant rig would be able to operate efficiently in virtually all parts of the world outside Norway and the Arctic. Discovery Offshore's acceptance of the KFELS Super A Class design attests to its potential, as well as our ability and commitment to deliver.

Customised to meet the requirements of Discovery Offshore for high-specification jackups that can be safely deployed in most areas worldwide, the rigs will be capable of operating in water depths of 400 feet and drilling depths of 35,000 feet.

For greater operational safety, the KFELS Super A Class is equipped with the latest pinion overload detection, rack phase difference detection, and brake failure and overload protection devices, thus even meeting the stringent Health, Safety and Environment (HSE) standards of the UK sector in the North Sea.

In addition to having strong drilling capabilities and cantilever load performance, the KFELS Super A Class includes a spacious deck and amenities to accommodate 150 men.
 

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