Keppel FELS Divests Interest in Rig for US$95 Million

Keppel FELS Limited has divested its entire 75% interest in ENSCO Enterprises Limited (JVC) for US$95 million in cash, to ENSCO Offshore International Company (ENSCO), a subsidiary of ENSCO International Incorporated.

Net gain from the disposal is US$13 million (S$22 million) or 2.8 Singapore cents per Keppel Corporation share.

The JVC is part of an alliance agreement with ENSCO to build, own and operate a jack-up rig, ENSCO 102. The agreement carries an option for ENSCO to buy KFELS' interest in the rig. ENSCO elected to exercise the option, which was set to expire in May 2004, and has become sole owner of the ENSCO 102.
Mr. Tong Chong Heong, Managing Director & Chief Operating Officer of Keppel Offshore & Marine Limited, said, "Keppel FELS remains focused on designing and building rigs and other offshore platforms. The Keppel Offshore & Marine group will continue to leverage our strengths to offer innovative and quality solutions to our customers."

Currently on charter to Shell in Malaysia, ENSCO 102 is a premium jackup based on the KFELS MOD V A class design, capable of working in water depths of up to 400 feet in environments such as South East Asia and the Gulf of Mexico.