Keppel to Build Two Jackups for Clearwater

Keppel FELS Limited (Keppel FELS) has secured new orders from Clearwater Capital Partners, LLC (Clearwater) to build a pair of premium KFELS B Class jackup rigs at $360m. The two high specification jackups are scheduled for delivery in 1Q 2013 and 2Q 2013 respectively.

As part of the agreement, Clearwater has options to build another two similar jackup units with Keppel FELS. If exercised, the options for the additional two rigs will bring the total contract value to above $730m.

Rob Petty, Managing Partner and Co-Founder of Clearwater, said, "Confidence is rapidly returning to the offshore industry and we expect a fundamental recovery of the sector. There is a clear bifurcation in the jackup market with oil companies increasingly focused on new, high specification rigs for their projects. We have followed this market closely and chose Keppel FELS as our long term partner to help us execute our investment plans in the transition of the jackup market from old rigs to safer, more efficient rigs.

The KFELS B Class jackup design is developed by Keppel's technology arm, Offshore Technology Development. When completed, Clearwater's rigs will be able to operate in water depths of 400 feet, drilling depth of 30,000 feet and accommodate 150 men. The new contracts with Clearwater are not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.