Keppel Secures Repeat Rig Order from Odfjell

Keppel FELS has secured a contract from Odfjell Invest (Odfjell) for a repeat KFELS B class jackup rig at US $121 million.

This contract follows from Odfjell's exercise of its option which was given to it when it signed the contract for the first rig in March 2004.

The jackup rig is scheduled for delivery in the second quarter of 2007.

Said Mr. Ketil Lenning, CEO of Odfjell Drilling, "Offshore drilling activities are on the rise and Odfjell is expanding its fleet to meet the increasing demand for premium jackups.

"We have chosen to build a second rig with Keppel FELS because the KFELS B Class is a proven design well received by the market.

"We have high expectations of Keppel FELS with regard to safety and quality and are confident that Keppel FELS will deliver world class rigs to Odfjell."

To date, Keppel FELS has achieved 600,000 manhours without loss time incident on rig no. 1 and secured a safety bonus of S$10,000 from the owner. The rig is due for delivery mid 2006.

Mr. Michael Chia, Executive Director of Keppel FELS, said, "We are glad that Odfjell has selected us as their preferred partner in the provision of offshore rig solutions.

"Odfjell's order for a second rig is testament to our proprietary KFELS B Class jackup design. The growing demand for such rigs has placed Keppel FELS in a strong position to capitalise on the growing offshore market."

Like the first rig, this new rig is designed for operation in water depths up to 350 feet, drilling down to 30,000 feet and accommodating 110 men.

With the new order, Keppel FELS will have ten KFELS B Class jackups currently being built and five in operation since the introduction of the KFELS B Class design in 2000.

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 2005.

Keppel FELS is a wholly owned subsidiary of Keppel O&M, the offshore and marine division of Keppel Corporation. It 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.

Odfjell Drilling is a drilling and well service contractor in the North Sea and other selected geographical areas.