Keppel to Build a Third Jackup for Awilco

Keppel FELS Limited (Keppel FELS) has secured a repeat order for a third KFELS B Class jackup rig from Awilco Offshore (Awilco) at US$146 million, via the exercise of an option agreement. The first and second rigs were announced in February and August 2005 respectively. Customised to Awilco’s requirements, the new rig, WilStrike, will be capable of drilling down to 30,000 feet in water depths of up to 400 feet. Delivery for this new rig is expected in second quarter 2009. Work on the first two rigs, WilCraft and WilBoss, is progressing well. Deliveries are expected in fourth quarter 2006 and early 2008 respectively. Keppel FELS is a wholly-owned subsidiary of Keppel Corporation, through Keppel Offshore & Marine, a leader in offshore rigs, shiprepair and conversion and specialised shipbuilding. Keppel O&M’s near market, near customer strategy is bolstered by a global network of 17 yards in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be the provider of choice and partner in solutions for the offshore and marine industry. Part of the Anders Wilhelmsen Group of Norway, Awilco Offshore has invested in six jackup drilling rigs under construction and two accommodation units. The contract is not expected to have material impact on the NTA or the earnings per Keppel Corporation share for FY2006.