22 Aug 2008

Masnet: Update on Black Dolphin

Keppel Corporation Limited wishes to provide an update on the “Statement on the Blackford Dolphin rig under repair at Keppel Verolme” made on 26 June 2008.

Keppel Verolme BV has completed its scope of work on the drilling unit Blackford Dolphin in compliance with the contract and we have been advised that the unit has commenced mobilisation under its drilling contract with Tullow for offshore Ghana. Blackford Dolphin Pte Ltd, a subsidiary of Fred Olsen Energy ASA, has made the final milestone payments.

Keppel Verolme and Blackford Dolphin Pte Ltd have entered into an addendum to the upgrading contract with the aim to resolve outstanding disagreements on final payments.

Under the addendum, Blackford Dolphin Pte Ltd has paid EUR 33 million, being half of the additional amount claimed by Keppel Verolme. Both companies have provided each other with bank guarantees for their outstanding claims.

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