The contract includes an option for another two units, with price adjustment for increase in steel prices and currency fluctuations.
The design of the jackup rig is proprietary to Keppel Offshore & Marine (Keppel O&M), the parent company of Keppel FELS. It is capable of operating in 350 feet water depths, drilling down to 30,000 feet and accommodating 110 men.
The new rig is scheduled for delivery in the second quarter 2006.
Since the introduction of the KFELS B design into the market in 2000, four such rigs have been completed, with four more currently on order. This represents above 60% of the total number of similar rigs on order worldwide during the same period.
Mr. Tong Chong Heong, Managing Director and Chief Operating Officer of Keppel O&M, said, "We are pleased that our KFELS B class design is well received by customers and has placed us in a strong position to take advantage of the current buoyancy in the offshore market."
Mr. Ketil Lenning, CEO of Odfjell Drilling, said, " We have selected the KFELS B class for its proven design as well as Keppel FELS' engineering and production capabilities. We are also emphasizing the safety standards."
Keppel FELS is the world leader in the design and construction of jackup rigs, having built 60% of the world's fleet on order in the last decade. It is a wholly-owned subsidiary of Singapore-listed Keppel Corporation Limited, through Keppel O&M.
Odfjell Drilling is a drilling and well service contractor in the North Sea, North Atlantic market, and other selected geographical niche areas.
The contract is not expected to have material impact on the net tangible assets and earnings per share of Keppel Corporation for the year ending December 31, 2004.
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