Keppel FELS Limited's repeat customer, Asia Offshore Drilling Limited ("AOD"), has exercised its first of two options to build a KFELS B Class jackup rig worth $184 million. The effectiveness of this first option is subject to AOD or its wholly-owned subsidiary entering into a construction contract with Keppel FELS and fulfilling certain conditions precedent.
This rig will be AOD's third with Keppel FELS and is scheduled for delivery in 3Q 2013. AOD, established by Singapore listed Mermaid Maritime Public Company Limited ("Mermaid"), had placed orders for two KFELS B Class jackup rigs in December 2010. Last week, AOD announced the completion of a private placement which will result in Mermaid and Seadrill Ltd. each having a 33.75% equal shareholding ownership in AOD. With the exercise of the option, Keppel Offshore & Marine's new orders for the year-to-date has reached S$7.4 billion (over $6 billion).
Developed by Keppel's technology arm, Offshore Technology Development, the KFELS B Class jackup is designed to provide maximum uptime with reduced emissions and discharges. It incorporates Keppel's advanced and fully-automated high capacity rack and pinion elevating system, and Self-Positioning Fixation System.
The exercise of the option is not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.