Keppel Wins Third KFELS Jackup Order from Sinvest

Keppel FELS has won a third KFELS Super B Class jackup order within a year from Norwegian Sinvest ASA through its wholly owned subsidiary, Deep Drilling Invest Pte Ltd.

Sinvest has signed an agreement with Keppel FELS to exercise the option, given in July 2004, to build this third rig at US$132.8 million for delivery mid 2007.

Under this same agreement, Sinvest has a further option to build a fourth jackup rig with Keppel FELS. The price for the option rig is subject to adjustment for steel price and currency exchange rates.

The third KFELS Super B Class jackup is identical to the two earlier rigs, which will be delivered next year. These rigs have capabilities for drilling High Pressure High Temperature wells up to 35,000 ft at 350 ft water depth.

Mr. Michael Chia, Executive Director of Keppel FELS said, "We are glad to partner Sinvest to build up their fleet of premium rigs. We are making good progress with the two rigs currently under construction, and our relationship with Sinvest has been excellent."

With the new order, Keppel FELS will have nine KFELS B Class jackups currently being built. This also brings the number of KFELS B Class rigs in operation and under construction to 14 since its introduction in year 2000.

Keppel FELS is the world leader in the design and construction of jackup rigs, having built over 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. The group has a network of 16 yards around the world to be close to its market and customers. 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.

Involved primarily in investments relating to the offshore industry, Sinvest ASA is a public company quoted on the Oslo stock exchange.

The contract secured is not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation for the financial year ending 31 December 2005.