Keppel FELS, a wholly-owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has won a contract from PEMEX Exploracion y Produccion, a subsidiary of Mexico's national oil company, Petroleos Mexicanos (PEMEX), to build two KFELS B Class jackup rigs worth US$420 million.
Scheduled for delivery in 1Q 2015, the high specification rigs will
be the 19th and 20th KFELS B Class rigs on order at Keppel, with 36
already delivered in the past decade.
When completed, the two rigs will join a number of KFELS B Class
jackup rigs built by Keppel for Mexican customers. This includes the
Primus jackup rig recently delivered to Oro Negro as well as the Tonala
rig operated by Peforadora Central.
Mr Wong Kok Seng, Managing Director (Offshore) of Keppel O&M and
Managing Director of Keppel FELS, said, "We thank PEMEX for selecting
the proven KFELS B Class design as the basis of their new rigs. With 36
rigs delivered and 20 on order, the KFELS B Class design has been the
rig of choice for drilling operators in meeting the higher specification
needs of their customers. We look forward to delivering high quality
rigs to PEMEX safely, on time and within budget.
"We are seeing more enquiries from Mexico for new rigs and we believe
our KFELS B Class jackup design is well suited to meet the requirements
of the Mexican market. Together with our Keppel AmFELS yard in
Brownsville, Texas, we aim to boost our track record and establish
ourselves as the foremost provider of drilling solutions in Mexico."
PEMEX is the world's fourth-largest crude producer at 2.5 million
barrels per day. The Mexican national oil company has estimated that
they will invest up to US$2.4billion in 2012 in exploration, and expect
to have 40 rigs eventually operating in Mexican waters.
A senior official of PEMEX said, "The KFELS B Class jackup rig, such
as the Tonala and Ocean Scepter which are operating successfully in
Mexico, has proven to be an efficient and high specification rig. The
two new rigs will be an important addition to our fleet and improve our
exploration and production capabilities. We are confident that Keppel
FELS will deliver the rigs according to the specifications required by
Developed by Keppel's technology arm, Offshore Technology
Development, the KFELS B Class jackup design is able to operate in water
depths of up to 400 feet and drill to depths of 30,000 feet.
The KFELS B Class rigs incorporate Keppel's advanced and
fully-automated high capacity rack and pinion jacking 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 the Institution of Engineers
Singapore in 2009.
Keppel AmFELS, Keppel O&M's yard in Brownsville, Texas has
previously delivered projects for PEMEX including accommodation
platforms. The yard is currently undertaking the construction of two
rigs for Mexico. The Papaloapan jackup, which was ordered by Perforadora
Central in March 2011, is under construction and on track for delivery
1Q 2013 while the Coatzacoalcos jackup rig is slated for delivery in 1Q
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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