Keppel FELS Signs Rig Agreement

Keppel FELS Limited has signed an agreement with a wholly owned subsidiary of the Skeie Group AS of Norway to build a rig for US$126 million.

To effect this agreement, financing for the construction of the rig must be completed by February 16, 2004.

Construction of the rig is expected to be around 26 months.

The rig to be built is a Keppel FELS MOD V B class enhanced jackup capable of operating in water depths of up to 350 feet and deep drilling of down to 35,000 feet.

The owner has an option to order within the next 6 months an additional unit with the same technical specification as the first unit with price adjustment for currency fluctuations.

KFELS is the world leader in the design and construction of jack-up 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 Offshore & Marine Limited.

Involved primarily in investments relating to the offshore industry, Skeie Group SA is a private company owned by the Skeie family.