21 Aug 2012

Keppel and Floatel sign contract for a fourth accommodation semi at US$315 million

Keppel FELS Limited (Keppel FELS) and Floatel International Ltd (Floatel) have finalised a contract for Keppel FELS to build a new generation harsh environment accommodation semisubmersible (semi) worth US$315 million. This follows the Letter of Intent announced by Keppel and Floatel earlier in March this year.

This will be Floatel's fourth accommodation semi with Keppel FELS after the delivery of Floatel Superior and Floatel Reliance in 2010 and the order of Floatel Victory in 2011, which is scheduled for delivery in 4Q 2013.

With delivery in early 2015, the new semi will be built to the Floatel Superior design, a DSS^TM 20NS design developed by GustoMSC and Keppel FELS' Deepwater Technology Group. Equipped with Dynamic Positioning (DP) 3 capability, it will meet the most stringent rules and regulations for worldwide operations including the Norwegian Sector.

Well equipped with a host of modern facilities, the semi will have a large payload and deck area in combination with dual cranes, making it ideal for construction support during new construction, maintenance activities or for decommissioning projects of offshore oil and gas installations. It will be able to accommodate 440 persons in single bed cabins with ample recreation areas as well as office amenities.

Floating accommodation platforms are needed to provide additional living quarters for support personnel in exploration and production activities. Such support personnel are required during hook-up and commissioning in the development phase, for maintenance and upgrading during the production phase, as well as for decommissioning.

The two Floatel rigs delivered in 2010, Floatel Superior and Floatel Reliance, have been chartered to Statoil in the Norwegian sector of the North Sea and to Petrobras in Brazil's Campos Basin respectively. Floatel Victory which is scheduled for delivery by Keppel FELS in 4Q 2013 has secured a charter with Chevron USA for its Jack St Malo field and with BP Exploration Operating Company for the Clair Ridge Development project on the UK Continental Shelf.

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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ABOUT FLOATEL INTERNATIONAL LTD
Floatel International Ltd. was established in 2006 to satisfy a market demand for a new generation of offshore floatels. The vision of the Company is to own and operate the most modern, safe and reliable floatel fleet in the world to meet the increased market demand. The first vessel, Floatel Superior, was delivered in March 2010 and is specifically designed for hostile environment meeting the latest North Sea regulations for year around operations. Floatel Superior is presently operating for Statoil in the North Sea. The second vessel, Floatel Reliance, is designed for medium harsh environment. It was delivered October 2010 and commenced a 5 year charter for Petrobras January 2011.

Floatel International's third vessel, Floatel Victory, is presently under construction at Keppel FELS and scheduled for delivery in 4Q 2013.

Floatel International AB is a management company responsible for construction supervision and operational management for and on behalf of the Owner, Floatel International Ltd.

For further information about Floatel International group of companies, please visit our website at: www.floatel.bm

ABOUT KEPPEL FELS
Keppel FELS is a subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), a wholly-owned company of Keppel Corporation Limited. Keppel FELS is a leading designer, builder and repairer of high-performance mobile offshore rigs. Its portfolio of proprietary designs and floating production solutions meets a broad spectrum of operating requirements, including deep waters and harsh environments.

As a group, Keppel O&M is also a leader in ship repair and conversion, and specialised shipbuilding. Its near market, near customer strategy is bolstered by a global network of 20 yards and offices 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 for solutions for the offshore and marine industry.

For more information on Keppel FELS, visit www.keppelfels.com

For further information, please contact:

Floatel

Peter Jacobsson
CEO
Floatel International AB
Tel: +46 31 352 07 00 / +46 768 56 36 18

Keppel