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Thursday, 6 February 2014

Keppel secures repeat contract from UMW for jackup worth US$218 million

Keppel FELS Limited (Keppel FELS), a subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has secured a contract from UMW Drilling 8 (L) Ltd, a wholly-owned subsidiary of UMW Oil & Gas Corporation Sdn. Bhd. (UMW Oil & Gas), for a KFELS B Class jackup rig worth US$218 million.

It will be the third KFELS B Class jackup rig for UMW Oil & Gas and is scheduled for delivery in 3Q 2015. The first jackup - UMW NAGA 4 - was delivered in February 2013 and the second - UMW NAGA 5 - is expected to be completed by 2Q 2014.

Mr Rohaizad Darus, President, UMW Oil & Gas said, "The KFELS B Class rigs are efficient drilling platforms with industry-leading features and have been well-received by the market. Our first jackup constructed by Keppel FELS, UMW NAGA 4, is currently deployed in offshore Malaysia while our second rig, UMW NAGA 5, is expected to be delivered in May this year and has already secured a charter from Nido Petroleum Philippines.

"We have taken this opportunity to acquire another KFELS B Class jackup from Keppel FELS to enable UMW Oil & Gas to accelerate the growth of our assets portfolio and meet the strong demand for premium jackup drilling rigs in the Asia Pacific region. Keppel FELS has been a good partner for us in delivering high quality rigs on time and without incidents. Teaming up with the world's leading rig builder is a boost to our aim of being Malaysia's premier drilling contractor."

The new rig is the 75th KFELS B Class ordered since 2000. Developed by Keppel's technology arms, Offshore Technology Development and Bennett Offshore, the KFELS B Class jackup rig is able to operate in water depths of 400 feet, drilling depth of 30,000 feet and accommodate up to 150 men.

Mr Wong Kok Seng, Managing Director (Offshore) of Keppel O&M and Managing Director of Keppel FELS said, "We are glad that UMW has chosen to build a third rig to the KFELS B Class design. Having our own proprietary rig designs empowers us to customise solutions for each client to suit their unique requirements in the shortest time possible. This provides us with a huge competitive advantage in terms of responding to clients' needs, which are changing with the advancement of drilling technology.

The KFELS B Class rig incorporates Keppel's advanced and fully-automated high capacity rack and pinion elevating system, and self-positioning fixation system. It provides maximum uptime with reduced emissions and discharges. For its environmental-friendly features, the KFELS B Class design was bestowed the Prestigious Engineering Achievement Award from Institution of Engineers Singapore in 2009.

The new 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.

CW8888's Keppel Order Book Tracking

Uncle8888 noted that this order at USD218 million is $4m higher than UMW NAGA 4 rig purchased in June 2012 at a cost of USD214 million.


1 comment:

  1. SHAH ALAM, Feb 17 (Bernama)-- UMW Oil & Gas Corporation Sdn. Bhd., a wholly-owned subsidiary of the UMW Group, took delivery of its new jack-up drilling rig, UMW NAGA 4, in Singapore yesterday. UMW signed an agreement to purchase the rig in June 2012 at a cost of USD214 million. The rig was constructed by Keppel FELS Limited.

    This is the Group’s third jack-up drilling rig, in addition to NAGA 2 and NAGA 3. This premium jack-up drilling rig is of high specifications and is able to work in a more challenging environment. The rig is able to operate in water depths of up to 400 feet with a drilling depth of 30,000 feet. UMW NAGA 4 is built to Keppel’s proprietary KFELS B Class design which is today the industry standard for modern jack-up rigs. It incorporates Keppel’s advanced and fully-automated high capacity rack and pinion elevating system and self-positioning fixation system.

    The delivery of this new rig marks another important milestone in UMW Oil & Gas’ history. It is also part of the company’s long-term plan to increase its fleet of drilling rigs to expand into regional market and eventually becoming a global oil & gas player.

    Rohaizad Darus, President of UMW Oil & Gas Corporation said, "At present, UMW Oil & Gas is actively involved in Indonesia, Thailand, China and Turkmenistan, but we are also aggressively developing new markets within ASEAN and the Asia-Pacific region. We are expanding our asset base to address the new markets and the higher technical requirements of the industry".

    UMW Oil & Gas is presently the only Malaysian company that owns and operates jack-up drilling rigs. NAGA 2 is currently working in Indonesia for Hess (Indonesia-Pangkah) Ltd, while NAGA 3 is working for Petronas Carigali in Malaysia.

    Rohaizad added, "The delivery of UMW NAGA 4 is significant not only for UMW, but also for the Malaysian oil and gas industry. This rig will be the third jack-up drilling rig fully owned and operated by a Malaysian company. Besides providing the capacity and capability required for UMW's long term expansion plan, the rig will also provide opportunity for Malaysians to be trained and exposed to premium modern jack-up drilling rig".

    UMW NAGA 4 has the capacity to accomodate 150 people, about 25% more than typical jack-up drilling rig of its class. The additional capacity will be used to accomodate trainees from the drilling academy established by UMW under collaboration with Petronas' skills training arm, Institut Teknologi Petroleum Petronas (INSTEP).


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