Seadrill Awards Contract to Keppel FELS

Thursday, June 09, 2011

Keppel FELS Limited (Keppel FELS) has been awarded a $142 million contract by Seadrill to build a repeat semisubmersible drilling tender (SSDT) based on the KFELS SSDTTM 3600E design.

Scheduled for delivery in 2Q2013, this is the eighth drilling tender that Keppel will be building for Seadrill since the launch of the design in 1994.

Wong Kok Seng, Managing Director of Keppel FELS said, "Keppel and Seadrill have established a trendsetting partnership, which spans seven KFELS SSDTs and six KFELS B Class jackup rigs. This partnership has provided the launch pad for our industry-acclaimed KFELS SSDT... The seventh drilling tender was completed in March 2011, ahead of schedule and with a perfect safety record. We at Keppel FELS are pleased to fortify our... alliance with Seadrill, and look forward to deliver the eighth KFELS SSDT unit to our customer safely, on time and within budget."

When completed, the latest tender rig for Seadrill will feature a crane capacity of 250 tons, four mud pumps and accommodation for 160 people. The Drilling Equipment Set will be supplied by Seadrill.

Designed by Keppel Offshore & Marine's (Keppel O&M) R&D arm, the Deepwater Technology Group, the KFELS SSDTTM series is designed to operate in deepwaters of up to 5,000 ft alongside Spars and Tension Leg Platforms.

The KFELS SSDT 3600E design was conferred the ASEAN outstanding engineering achievement award in December 2009 for its eco-friendly features and sustainable operations.

The first of Seadrill's KFELS SSDT fleet, West Pelaut, was designed and built by Keppel FELS in 1994, and was conferred the highly coveted Shell Platform Rig of the Year award in 2004, 2006 and 2008.

The above 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.

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