15 Apr 2013

Keppel secures new jackup order for US$226 million from Falcon Energy Group

Keppel FELS Limited (Keppel FELS), a wholly-owned subsidiary of Keppel Offshore & Marine (Keppel O&M) has secured a contract from Singapore-listed Falcon Energy Group Limited (Falcon Energy) through its subsidiary, FTS Derricks, to construct a KFELS Super B Class jackup rig.

Mr Wong Kok Seng, Managing Director (Offshore) of Keppel O&M and Managing Director of Keppel FELS said, "Falcon Energy entered the offshore oil drilling business when they ordered two jackup rigs from China in 2011. We are delighted that Falcon Energy has chosen the KFELS Super B Class design for their new high specification jackup rig, which will be built at our yard in Singapore.

"So far this year, Keppel FELS has already delivered six rigs ahead of schedule, safely and on budget. For the latest delivery of AOD II, a KFELS B Class jackup, to Asia Offshore Drilling, we received a bonus of about US$2 million for completing the rig 62 days early. With another 21 KFELS B Class/ Super B Class rigs on order including this latest contract, it is today the industry benchmark for premium jackups rigs. We look forward to providing Falcon Energy and their partners with a premium, safe and efficient rig with on schedule delivery."

Customised to Falcon Energy's requirements, the KFELS Super B Class jackup rig is equipped with a high capacity hook load of two million pounds for operations in high temperature and high pressure wells. Developed by Keppel O&M's technology arm, Offshore Technology Development, the KFELS B Class/Super B Class jackup design provides maximum uptime with reduced emissions and discharges.

A new customer to Keppel FELS, Falcon Energy is a leading player in the regional Offshore Marine and Oil and Gas sectors.

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 Falcon Energy Group
Falcon Energy Group Limited is an SGX Mainboard-listed leading player in the regional Offshore Marine and Oil and Gas sectors. The Group provides a full spectrum of support services for the Offshore Marine and Oil and Gas cycle, from initial exploration and drilling to production and post-production stage, with a specialist focus on the production phase of oilfield activities.

The Group has four business divisions with operations spanning South-east Asia, India and Australia. Its Marine Division provides offshore support vessels for services such as offshore hook up and commissioning, offshore conductor piling and pipe trenching, among others. Its Oilfield Services Division provides services such as agencies, warehousing, logistics, procurement and other general support activities. Through its Oilfield Projects Division, the Group is involved in projects and investments related to the Marine and Oil and Gas industry.

Besides the drilling rigs on order, Falcon Energy Group is further positioning itself to expand its fleet of premium drilling rigs for the market.

For more information, visit: http://www.falconenergy.com.sg/

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, visit www.keppelfels.com

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