19 Jan 2010

Keppel FELS delivers first rig of 2010 on time and within budget

Keppel FELS Limited (Keppel FELS) has delivered ENSCO 8502, the third of seven ENSCO 8500 Series® semisubmersible (semi) drilling rigs it has been contracted to build exclusively for Ensco International (NYSE:ESV).

Delivered seven days ahead of schedule, ENSCO 8502 is on track to commence operations in the U.S. Gulf of Mexico in the second quarter of 2010, under a two-year contract with Nexen Petroleum U.S.A. Inc. with term extension options.

The early completion was a culmination of progressive productivity gains achieved by Keppel FELS on the construction of the Series.

Construction lead time for ENSCO 8502 was reduced by 1.1 million manhours, as compared to the first rig in the Series. This represents a 15% boost in efficiency.

Mr Dan Rabun, Chairman, President & CEO of Ensco International, said, “We are pleased that Keppel has remained an outstanding long-term supporter of Ensco’s deepwater strategy. We commend the shipyard and management teams for managing the project schedule and resources very well even through challenging times, resulting in delivery of the rig early and within budget.

“With each consecutive rig, we have seen continuous improvement in the construction progress, reaffirming our decision to build the entire seven-rig series with a single yard to realise efficiencies and economies of scale. We are further convinced that Keppel FELS is the right choice as our trusted shipyard partner.”

Mr Tong Chong Heong, CEO of Keppel FELS, said, “Keppel has supported and moved closely in step with our customers as the offshore market’s needs evolved over the years.

“In particular, we take pride in delivering to our customers, not only on time and within budget, but also quality products that are ready to be deployed for operations, smoothly and safely. We are confident that, like her sister rigs, ENSCO 8502 will be ready to drill on location shortly after she arrives in the Gulf of Mexico.”

Keppel Offshore & Marine Group, through its global network of yards delivering on its ‘Near Market, Near Customer’ strategy, constructed ten of Ensco’s world-class jackups, which form a substantial part of the rig owner’s premium fleet of 42-jackups.

When the ENSCO 8500 Series® is completed, Keppel-built rigs will make up 30% of the leading driller’s premium fleet. Construction of the next four rigs remains on schedule with expected deliveries extending from the fourth quarter of 2010 into 2012.


About ENSCO 8500 Series®

The proprietary ENSCO 8500 Series® design is capable of drilling in up to 8,500 feet of water, and can be upgraded to 10,000 feet water-depth capability if required. The design includes a 35,000' nominal rated drilling depth, 2 million pounds of hoisting capacity, 8,000 tons of variable deck load and an open layout well suited for subsea completion activities. Improved visibility from the open deck configuration also enhances safety. With these features, the ENSCO 8500 Series® rigs will be especially well-suited for deepwater development drilling.

About Ensco International plc

Ensco International (NYSE:ESV) brings energy to the world as a global provider of offshore drilling services to the petroleum industry. With a fleet of ultra-deepwater semisubmersible and premium jackup drilling rigs, Ensco serves customers with high-quality equipment, a well-trained workforce and a strong record of safety and reliability. To learn more about Ensco, please visit www.enscointernational.com.

About Keppel FELS

Keppel FELS is a wholly owned subsidiary of Keppel Offshore & Marine Ltd, a wholly-owned company of Keppel Corporation Limited. Keppel O&M is a leader in offshore rigs, 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.

For further information, please contact

Diana Chan
Group Corporate Communications
Keppel Corporation Limited
Tel: (65) 6413 6430
Email: diana.chan@kepcorp.com

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The early and within budget delivery of ENSCO 8502 bears the hallmark of Keppel’s win-win partnership with Ensco - seen here are Mr Wong Kok Seng (right), Executive Director of Keppel FELS and Mr Bob Issac, Senior Legal Counsel of Ensco International plc, at the delivery.

ENSCO 8502 was delivered seven days ahead of schedule as a result of the progressive productivity gains achieved by Keppel FELS on the construction of Ensco's seven-rig series.

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