Mexico's Grupo R Orders Additional Jackups from Keppel FELS for $820M
Keppel FELS, a wholly-owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has secured contracts from Mexican drilling company, Grupo R, to build four jackups worth $820 million.
The jackups will be built to Keppel's proprietary KFELS B Class design and are scheduled for delivery progressively from 2Q 2015 to 4Q 2015.
When completed, Keppel FELS will have built ten KFELS B Class jackups for Mexican customers since 2012, including two for PEMEX.
Wong Kok Seng, managing director (Offshore) of Keppel O&M and managing director of Keppel FELS, said, "Mexico is an important market for us and we are glad that Mexican operators have chosen the KFELS B Class as their preferred rig design and Keppel as the preferred shipyard. We look forward to support Grupo R as they expand their fleet of premium jackup rigs for the Mexican market, with safe, on time and on budget deliveries."
Customized to Grupo R's requirements, the rigs will be able to operate in water depths of up to 400 feet and drill to depths of 30,000 feet.
PEMEX, the Mexican national oil company has announced investment plans of $25.3 billion for 2013, of which $20 billion will be targeted at upstream activities. On a visit to Keppel FELS on 30 January 2013, Mr Emilio Lozoya Austin, CEO of PEMEX, said that the company is embarking on its most ambitious drilling program in decades and plans to add between eight and 12 offshore platforms to its fleet.
Ramiro Garza V., CEO of Grupo R said, "PEMEX have indicated their aim to operate the biggest fleet of jackup rigs in the world and Grupo R is well positioned to support them with four premium jackup rigs. We chose the KFELS B Class jackup design for our first shallow water rigs because of their high specifications and their proven success for PEMEX. In choosing Keppel FELS, we are also partnering a shipyard which is able to meet the needs of our customers in terms of cost-effectiveness, time, technology, quality, and safety with environmental considerations. This will further enhance our capabilities as the leader in Mexico's onshore and offshore drilling industry."
Developed by Keppel's technology arm, Offshore Technology Development, 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.
The above contracts are 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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