Keppel FELS Limited (Keppel FELS), a wholly-owned subsidiary of Keppel Offshore & Marine (Keppel O&M) has secured a contract from an affiliate of Clearwater Capital Partners (Clearwater) to build a pair of premium KFELS B Class jackup rigs. The total cost of the project is about US$440 million, which also includes owner furnished equipment and project management fees.
The rigs are scheduled to be completed in 4Q 2015 and 1Q 2016.
Mr Wong Kok Seng, Managing Director (Offshore) of Keppel O&M and
Managing Director of Keppel FELS said, "We are glad to have repeat
customer Clearwater reaffirm their confidence in our capabilities and
rig design. With 49 KFELS B Class/Super B Class jackup rigs already
delivered and 17 on order, it is a clear indication of the strength of
the design with oil companies and drilling operators. We look forward to
providing Clearwater with premium, safe and cost-efficient rigs that
are in demand in the market.
"Having delivered 16 rigs already this year, Keppel FELS has
demonstrated its strong project execution capabilities in completing all
its projects safely, ahead or on time and within budget. In addition,
with the rigs being built to repeat designs, we are able to reap
efficiencies by replicating the process to speed up the work."
The KFELS B Class jackup rig is able to operate in water depths of up
to 400 feet, drill to 30,000 feet deep and equipped with offline
standbuilding capability. Developed by Keppel's technology arm, Offshore
Technology Development, the KFELS B Class jackup design provides
maximum uptime with reduced emissions and discharges.
Dr Yao Chye Chiang, Singapore-based Chief Operating Officer of
Clearwater said, "We continue to see strong demand for new high
specification jackup rigs as the industry continues its rig replacement
trend. Even with the number of new jackups entering the market this
year, more than half the existing rigs will be older than 30 years by
"The KFELS B Class is a proven design which has been the
rig of choice for leading oil companies in the industry. This is an
opportune time for us to scale up with two rigs of this design and we
are confident in getting a good return on our investment. As the world's
leading rig builder with a strong track record for delivering high
quality rigs on time and on budget, Keppel FELS is the ideal shipyard
partner for us."
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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