Scorpion Offshore Orders Two More Jackups

The contract price for the two rigs, excluding Owner Furnished Equipment, is approximately US $180 million.

The new units represent the third and fourth jackup rigs in Scorpion's fleet. The first two rigs, which were secured in July 2005, are currently being constructed by Keppel AmFELS. All four units are ultra-premium class jackups suited for both international operations as well as deep gas drilling in the Gulf of Mexico.

Scorpion has worked with Keppel AmFELS and LeTourneau to secure the following favourable rig delivery schedule:

Rig #1 – Delivery May 2007
Rig #2 – Delivery October 2007
Rig #3 – Delivery March 2008
Rig #4 – Delivery June 2008
Scorpion also holds one option for Keppel AmFELS to build another comparable rig. This option will expire at end November 2005.

A wholly owned subsidiary of Keppel Corporation through Keppel Offshore & Marine, Keppel AmFELS engages in the construction, refurbishment, conversion, life extension and repair of a complete range of mobile drilling rigs and platforms. Its comprehensive facilities are first class, including a drydock capable of docking the largest semisubmersible drilling units, and a modern steel processing plant.

Scorpion Offshore Ltd is a Bermuda based corporation founded in 2005 to own and operate state-of-the-art offshore drilling rigs. Scorpion has an experienced management team located in Houston, Texas.

The transaction is not expected to have material impact on the NTA or the net earnings per Keppel Corporation share for FY2005.