Keppel to Build US$125 Million Jackup for Awilco

Keppel FELS has won an order to build a US$125 million jackup rig, WilCraft, from Awilco AS, the offshore arm of The Anders Wilhelmsen Group of Norway.

WilCraft, the new KFELS B Class rig, is scheduled for delivery in end December 2006.

Mr. Alexander Krafft, Managing Director of Awilco Drilling, said, "We are expanding our offshore fleet to meet the growing demand for premium jackups. Timing of delivery and the design capabilities of the jackup are most important factors for us.

"Awilco has chosen to build the KFELS B Class jackup with Keppel FELS because of their ability to deliver a well built rig with high qualities to meet our needs and requirements."

Mr. Michael Chia, Executive Director of Keppel FELS, said, "I am confident that this KFELS B Class jackup will meet the drilling needs and demands of Awilco, with whom we are committed to develop a long-term relationship to assist in their fleet expansion."

Developed by Offshore Technology Development (OTD), Keppel O&M's R&D arm, the KFELS B Class jackup, WilCraft, is customized to Awilco's specific requirements.

Built to the highest industry standards for jackup rigs, the KFELS B Class jackup, WilCraft, incorporates the latest design and engineering concepts and is capable of drilling down to 30,000 feet in water depths of up to 400 feet.

The contract includes an option for an additional unit of similar design and capacity as the first, with price adjustment for steel material price and currency fluctuations.

This contract is not expected to have material impact on the net tangible assets and earnings per share of Keppel Corporation for the financial year 2005.

With the new order, Keppel FELS will have successfully clinched seven KFELS B class contracts since 2004. This also brings the number of KFELS B Class rigs in operation and under construction to 13 since its introduction in year 2000.

Keppel O&M, a wholly-owned subsidiary of Keppel Corporation Ltd, is a global leader in offshore rigs and ship conversion and repair as well as a specialized shipbuilder. Its near market, near customer strategy is bolstered by a global network of 16 yards in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be a provider of choice and a partner in solutions for the offshore and marine industry.