Singapore: Keppel Secures USD 245 Million Jackup Rig Contract from Ensco

Keppel FELS Limited (Keppel FELS) has secured a contract to build an enhanced KFELS Super A Class harsh environment jackup rig from Ensco plc for US$245 million. The rig is scheduled for delivery in 3Q 2014.

This contract arose from the exercise of an option which was part of Ensco’s order of two KFELS Super A Class rigs on 10 February 2011.

Mr. Dan Rabun, Chairman and CEO of Ensco plc, said, “Ensco’s new series of jackup rigs are enhanced versions of the KFELS Super A Class design that will provide increased levels of efficiency for customers. By building these new Super A Class jackups, we will continue Ensco’s tradition of delivering leading customer service with one of the largest and youngest premium jackup fleets in the world.

“Standardisation across our 11 KFELS design rigs improves reliability for customers as we benefit from more efficient construction, training, daily operations, inventory management, and repairs and maintenance.”

Mr Tong Chong Heong, CEO of Keppel Offshore & Marine, added, “We are glad that Ensco has chosen to build another rig to the KFELS Super A Class design. We are confident this new generation rig will meet the requirements for robust drilling solutions in harsh environments.

“The KFELS Super A Class has been customised to meet Ensco’s needs and demonstrates the win-win partnership we have with Ensco in growing both our companies to the next level. From the development of designs to the execution of projects, we have built up a proven track record with our customers around the world.”

A viable and cost-effective solution for harsh environments and cold climate areas, the new KFELS Super A Class boasts the distinctive qualities of Keppel FELS’ proven jackup rig designs.

The KFELS Super A Class rig can operate in water depths of 400 feet and drill to depths of 40,000 feet. It features advanced drilling systems with 2.5 million pounds of static hook load, a spacious deck and comprehensive amenities for the comfort of a 150-person crew. It also has an offline stand building capability to handle drill pipes efficiently, boosting overall rig performance and productivity.

The introduction of the KFELS Super A Class is a continuation of the proven KFELS harsh environment class rig which has been operating very successfully in the North Sea since the 1980s.

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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Source: Keppel FELS, October 7, 2011.