Diamond Awards Keppel FELS $77 Million in Contracts

Keppel FELS Limited, the offshore arm of the Keppel Group has secured contracts worth a total of US $77 million from Diamond Offshore Drilling Inc. for the upgrades to the semisubmersible, Ocean Rover and jackup, Ocean Tower.

This comes hot on the heels of a US $34 million contract from Diamond Offshore for the upgrading of four jackup rigs in July this year.

These contracts were secured as a result of KFELS' high quality services and the outstanding work it is performing on Ocean Baroness, presently in the final stages of an extremely challenging deepwater upgrade in KFELS' Pioneer Yard in Singapore.

Said Mr Tong Chong Heong, Managing Director of KFELS, "We are very pleased that Diamond Offshore has chosen us to be a partner in the enhancement of their fleet of vessels. It demonstrates their confidence in KFELS' expertise and engineering strength to undertake sophisticated upgrades."

"We are committed to continue to add value to Diamond Offshore with our high quality work and our ability to think out of the box to develop alternative and cost effective solutions for our customers."

KFELS has been able to provide innovative solutions on Ocean Baroness, a Victory-class semisubmersible which is being enhanced with 5th generation capabilities, allowing it to work in challenging deepwater of up to 6,500 ft and the capability to handle 5,500 tons operating variable deck load.

In the newly awarded contract, Ocean Rover will undergo an upgrade with specifications similar to the enhanced Ocean Baroness. The project will be undertaken in KFELS' Pioneer Yard and is estimated to take 18 months.

KFELS' yard in Brownsville, Texas, Amfels Inc (AMFELS) will carry out the work on Ocean Tower, a 350 ft independent-leg slot-type jackup rig which will be upgraded to a cantilever-type rig with a new derrick, mud pump, sub base, shaker house and accommodation facilities. The project is expected to take one year.

Mr. Lawrence Dickerson, President and Chief Operating Officer of Diamond Offshore said, "These expeditious upgrades are part of our long-term strategy to enhance our fleet capabilities in an effort to better serve the needs of our customers."

"KFELS and AMFELS have always been able to deliver our projects quickly and with the desired quality. We are confident that the upgrades will similarly fulfill our expectations at a significant cost advantage."