Keppel FELS Wins Repeat Business from Awilco

Keppel FELS has received notice from Awilco AS that it will exercise its option to build a US $134 million jackup.

This is Awilco's second KFELS B Class rig with the Keppel FELS. Contract for the first rig was signed in February 2005.

This new rig is expected to be delivered first quarter 2008.

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

Built to the highest industry standards for jackup rigs, the KFELS B Class jackup, 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.

Keppel FELS is a wholly-owned subsidiary of a wholly-owned subsidiary of Keppel Corporation through Keppel Offshore & Marine Ltd (Keppel O&M). Keppel O&M is a global leader in offshore rigs and ship conversion and repair as well as a specialised shipbuilder. Its near market, near customer strategy is bolstered by a global network of 17 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.

Awilco AS (Awilco) is the offshore arm of The Anders Wilhelmsen Group of Norway.

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.