$126M Newbuild Contract Now Effective

Keppel FELS Limited announced that its rigbuilding contract with the Skeie Group AS has come into effect on February 16, 2004. The $126 million contract, announced on January 20, 2004, also includes an option for an additional unit within the next six months. Developed by Keppel FELS’ sister company, Offshore Technology & Development, the rig will be an enhanced KFELS B class jackup, capable of operating in water depths of up to 350 ft. and high pressure high temperature (HPHT) deep drilling of down to 35,000 ft. The rig is due for delivery in the second quarter of 2006. A privately owned company, Skeie Group AS is primarily involved in investments relating to the offshore industry.