22 Dec 2010

Keppel to build US$180 million KFELS B Class jackup for Jasper

Keppel FELS Limited (Keppel FELS) has secured an order for a KFELS B Class jackup rig worth about US$180 million from Jasper Investments Limited (Jasper), with an option for another similar unit. The rig is slated for delivery in 2H 2012.

If exercised, the option for the additional rig will bring the total contract value to about US$365 million.

Mr Wong Kok Seng, Executive Director of Keppel FELS, said, "We would like to thank our new customer Jasper for entrusting Keppel FELS with its latest newbuild rig.

"Having built more than 40% of the world's jackup rigs in the last 10 years, we continue to set benchmarks, not just for completing newbuilds safely, on time and within budget, but also for robust solutions that serve our customers' needs.

"This is the fourth order for our proprietary KFELS B Class design received within the span of a month. It reflects the growing market value of this high specification rig with a proven performance and safety track record."

The KFELS B Class design is cementing its position as the preferred jackup solution for international drillers with a total of 33 units having entered the global market. Jasper's latest unit will be able to operate in water depths of 400 feet, drill 30,000 feet deep and accommodate 150 men.

Mr Geoffrey Yeoh, Executive Director of Jasper, said, "As confidence returns to the global oil and gas industry, we are stepping up our building programme to tap into opportunities fuelled by persistent demand for new-generation, high-capability rigs.

"Our partnership with a world-class rig builder and designer like Keppel FELS will strengthen our position to participate in high value projects that will give Jasper a firm foothold in the offshore drilling sector. The addition of the industry-proven KFELS B Class jackup rig will boost the capability of our premium fleet, with which we are confident of delivering high performance and value to our customers."

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

About Jasper Investments Limited

Jasper Investments Limited is a holding company listed on the SGX since 1993 which principally invests in the offshore oil and gas drilling and services sector. Jasper's principal subsidiary, Jasper Offshore, owns and operates oil rigs for deep sea drilling which are contracted out to oil and gas exploration and production companies. For more information on Jasper Investments, please visit http://www.jasperinvests.com/index.php.

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, shiprepair 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 further information, please contact:

Ivana Chua (Ms)
Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: (65) 64136 436
Email: ivana.chua@kepcorp.com