Keppel FELS Sells Three Rigs for US$55 Million

Further to the announcement this week, Keppel FELS Ltd (Keppel FELS) has signed an agreement to sell three rigs to a drilling services company for a cash consideration of US$55 million, payable upon delivery expected in end May 2004.

The three rigs, the ENSCO 55 jackup and ENSCO 23 and ENSCO 24 platform rigs, are part of the consideration for the construction of a new rig for ENSCO International Incorporated (ENSCO).

"Apart from the sale, we are expected to upgrade and refurbish one of the rigs, the ENSCO 55, in one of our shipyards," said Mr Tong Chong Heong, Managing Director and Chief Operating Officer of Keppel FELS' parent company, Keppel Offshore & Marine (Keppel O&M).

A wholly owned subsidiary of Keppel Corporation Limited, Keppel O&M operates a network of 16 yards worldwide in order to offer one-stop solutions to customers in the different markets. Keppel FELS is the world leader in the design and construction of jackup drilling rigs.

The transaction 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.