Safe and early delivery of Floatel’s second unit earns Keppel US$1.1 million bonus

Accommodation rig is contracted to Petrobras for five years

Singapore, 29 October 2010 – Keppel FELS Limited (Keppel FELS) has surpassed its earlier track record for Floatel International (Floatel), with the delivery of the latter’s second semisubmersible accommodation rig, Floatel Reliance, 63 days early, within budget and without any lost-time incidents, meriting a bonus of US$1.1 million.

Floatel Reliance is contracted to Petrobras for five years, with operations expected to commence early 2011. The rig will be wet-towed from Singapore to Rio de Janeiro on a voyage expected to last up to 65 days.

Mr Peter Jacobsson, CEO of Floatel International said, “Securing a long-term contract for Floatel Reliance even before completion is a strong sign of the market’s assurance in the superiority of the new-generation KFELS SSAUTM 3600 design.

“Despite the stringent schedule, the Floatel and Keppel teams have worked safely together to complete the rig. We recognise the value in partnering a world leader like Keppel FELS, which we have leveraged successfully to become the premier contractor for new-generation and safe semisubmersible accommodation units.”

Sister rig, Floatel Superior, of the DSSTM 20NS design was delivered by Keppel FELS in March this year 43 days early, safely and within budget. Having completed a three-month charter for ConocoPhillips Australia, it has recently arrived in Norway and is being prepared for the charter with Talisman Energy Norge AS at the YME field this winter, followed by work for Statoil Petroleum AS.

Mr Jacobsson commented, “We are experiencing strong demand for our newgeneration floatels with good term rates. Floatel Superior has proven its worth for efficient and safe deployment. We are confident that Floatel Reliance will deliver similar success and perform to expectations as soon as it arrives in Brazil.”

Mr Wong Kok Seng, Executive Director of Keppel FELS said, “With our wellhoned strengths in design, engineering, project management and construction execution, we have successfully developed with Floatel outstanding accommodation rigs that offer the highest standards of health and safety features to safeguard the wellbeing of crew. We look forward to deepen this winwin partnership which we have built up over two record-setting rig deliveries to

Floatel this year. “We consider our projects successful only if they are completed safely. We thank

Floatel for acknowledging our safety achievement with a good bonus.”

Floating accommodation platforms provide additional living quarters for drilling and production personnel deployed for work in deepwater locations. Such support is needed during hook-up and commissioning in the development phase, for maintenance and upgrading during the production phase, as well as for decommissioning.

Designed by Keppel O&M’s Deepwater Technology Group, the KFELS SSAUTM 3600 accommodation semisubmersible was developed to meet growing demand for safe and greater-capacity living quarters. Keppel FELS previously delivered the first unit of this design, Safe Concordia, in 2005.

The six-column Floatel Reliance provides accommodation for 500 persons complete with full recreational facilities. It is cost-effective and capable of operating alongside fixed platforms, with a complement of a fully redundant Dynamic Positioning System, a high crane capacity and fire fighting capabilities.