03 Mar 2006

Keppel’s contract with Atwood for a newbuild jackup is now effective

Keppel AmFELS Inc. is pleased to announce that its contract with a wholly-owned subsidiary of Atwood Oceanics Inc. (Atwood) for the construction of a new jackup rig is now effective.

This contract follows the Letter of Intent signed between the two companies announced on 7 February 2006.

The rig, excluding Owner Furnished Equipment, is valued at US$110 million and is due for delivery in the third quarter of 2008.

Said Mr. Ho Cheok Yuen, President and CEO of Keppel AmFELS, “We are glad that Atwood recognises our ability to deliver solutions on time and on budget. I am certain that when delivered, this new rig will be a great addition to Atwood’s fleet of rigs.”

This new rig will be built to the LeTourneau Super 116E design, with leg lengths of 477 feet (and can be upgraded to 511 feet), and capable of drilling wells up to 30,000 feet deep in water depths of 350 feet.

Mr. John Irwin, President of Atwood Oceanics, said “Atwood and its affiliates are pleased to have the opportunity to work with Keppel AmFELS on this jackup project. Keppel AmFELS has a long established reputation as a strong shipyard with extensive experience in the construction of ultra-premium jackup drilling units.”

Located in Brownsville, Texas, Keppel AmFELS is one of the best-equipped offshore yards in the area, serving customers operating in the Gulf of Mexico and internationally. With this new rig, Keppel AmFELS is constructing a total of seven jackup rigs for Atwood, Scorpion Offshore and Diamond Offshore. The yard is also building two accommodation platforms for PEMEX and a sludge vessel for the City of New York and undertaking the repair works of four offshore structures.

A wholly-owned subsidiary of Keppel Corporation through Keppel Offshore & Marine, Keppel AmFELS engages in the construction, refurbishment, conversion, life extension and repair of a complete range of mobile drilling rigs and platforms. Its comprehensive facilities are first class, including a drydock capable of docking the largest semisubmersible drilling units, and a modern steel processing plant.

Atwood is a New York Stock Exchange listed company. The company engages in international offshore drilling and completion of exploratory and developmental oil and gas wells as well as related support, management, and consulting services.

The transaction is not expected to have a material impact on the NTA or the earnings per Keppel Corporation share for FY2006.

For further information, please contact

Sarah Seah (Ms)
Deputy General Manager
Keppel Group Corporate Communications
Tel: (65) 64136 420
Email: sarah.seah@kepcorp.com

This press release is available at www.kepcorp.com and www.keppelom.com

Attachments:

A firm handshake between Mr C. Y. Ho, President/CEO of Keppel AmFELS (left) and Mr Alan Quintero, General Manager (Engineering) of Atwood Oceanics, signifying partnership in the construction of the new jackup rig for Atwood.