03 Oct 2011

Keppel FELS wins order for Safin’s first KFELS B Class jackup rig worth US$199 million

Keppel FELS Limited (Keppel FELS) has secured a contract for its high-specification KFELS B Class rig from Safin Gulf FZCO (Safin) worth US$199 million.

Scheduled to be delivered to Safin in 3Q 2012, the rig will be a refurbishment and upgrade of a KFELS B Class jack-up rig that Keppel FELS purchased earlier this year.

The high-specification KFELS B Class rig will be installed with offline stand building features. It will also have a full 15,000 psi BOP system, 70-feet cantilever outreach, with upgraded mud pit storage capacity of 4,000 bbls and be able to accommodate up to 150 personnel.

Mr Raimonds Namikis, Executive Vice President of Safin said, "The high-specification KFELS B Class is a proven design and with the tight jack-up market, we are delighted to be able to receive it much earlier than if we were to place a new order. In working with Keppel, we are assured of the effectiveness of their proprietary designs and the reliability of their project management. This will enable Safin to meet the needs of our customers and kick start the programme of our premium rig fleet."

Mr Wong Kok Seng, Managing Director of Keppel FELS said, "With the refurbishment and upgrade of this jackup, we are able to provide a high-specification rig on a fast-tracked schedule. Such jack ups are in high demand, especially for those scheduled for delivery in 2012.

"We are pleased to embark on a new partnership with Safin and look forward to supporting them as they expand their offshore fleet and presence in the Middle East. Our keen understanding of our customers' businesses enables us to anticipate their needs and tailor the appropriate products and services for them. "

The above contract is not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year.

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About Safin

Safin Gulf FZCO is part of privately owned Safin GmbH which is among the 10 largest independent steel trading and distribution companies in the world. Safin GmbH was established in 1992 and today they have offices in 14 countries with representation by agents in another 42 countries. The head office is in Vienna, Austria.

In addition to steel trading, where the company is active in all the major markets, Safin GmbH is also involved in, amongst other things, mining, where it has won concessions to develop iron ore mines in Kazakhstan, as well as coal and oil trading. Safin GmbH counts among its close clients companies such as Gazprom, VAZ, NLMK, MMK, Mechel, Huyndai, Mitsui, Thyssen Krupp, Sabic-Hadeed, Baosteel, Arcelor-Mittal, Riva Group, Anshang, SSI, Salzgitter, Celsa and more than 400 other clients and customers worldwide.

Safin Gmbh has since 1998 represented Thyssen Krupp subsidiary OW in Russia and Kazakhstan for equipment supplied from German mills under the Deutschbank-Hermes program.

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 O&M is a leader in offshore rig design, repair and construction, 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, please visit www.keppelfels.com 

For more information, please contact:

Media

Eva Ho
Deputy General Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: (65) 6413 6424
Email: eva.ho@kepcorp.com

Investor Relations

Chua Ying Ying
Assistant General Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: (65) 6413 6295
Email: yingying.chua@kepcorp.com