Keppel FELS Lands $240M Newbuild Jackup Contract from Japan's BOTL

Keppel Corporation Ltd. announced Friday that Keppel FELS Limited (Keppel FELS), a wholly-owned subsidiary of its unit Keppel Offshore & Marine (Keppel O&M), has secured a contract from BOT Lease Co., Ltd (BOTL), an affiliated company of The Bank of Tokyo-Mitsubishi UFJ, for a KFELS Super B Class jackup worth about $240 million.

Scheduled for completion at end 2016, the rig – which is provisionally named Hakuryu 15 (400' ILC) – will be operated by Japan Drilling Co., Ltd (JDC) based on the leased agreement with BOTL.

Wong Kok Seng, managing director (Offshore) of Keppel O&M, said, “We are pleased for this opportunity to support BOTL, and to join hands with our valued customer JDC once again. Hakuryu 15 is the second KFELS Super B Class jackup that will join JDC’s fleet, and their support is a reiteration of their trust and confidence in our proprietary solutions and companies.

“The KFELS Super B Class is an innovative solution for drilling rigs that can operate in deeper depths and at higher temperature and pressure levels. With 11 such rigs successfully operating around the world, we are confident this new addition will be just as successful for BOTL and JDC. Our strong understanding with JDC developed over several projects will stand us in good stead in delivering this rig to their highest standards, safely, on time and within budget.”

Yuichiro Ichikawa, president and representative director of JDC, said, "Over the years, we have entrusted several of our newbuilding and repair projects to Keppel and they have proven to be a worthy partner. Hakuryu 11 (425' ILC), our KFELS Super B Class unit from Keppel FELS was delivered safely and on-time in 2013, and has been working well in the field. Hakuryu 15 will enable us to meet the strong demand from our customers for premium class jackups and strengthen our position as a leading offshore drilling contractor. We look forward to receive another outstanding drilling unit that fits our exacting requirements."

The KFELS Super B Class design has a drilling depth of 35,000 feet. This rig’s leg structure is uniquely designed to provide enhanced robustness for operations at 400 feet water depth. The rig, adapted to JDC’s operating philosophy, is engineered to operate in high ambient temperatures and can accommodate 150 personnel onboard. It features an offline stand building capability to handle drill pipes efficiently, a high capacity hook load of 2 million pounds, boosting overall rig performance and productivity.

Apart from newbuilding projects, Keppel O&M’s yards in Singapore and the U.S. have also collaborated with JDC on the repair and maintenance of rigs such as Hakuryu 5 (mid-water semisub) and Hakuryu 10 (375' ILC).

The above contract is 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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