Keppel Wins Fifth Jackup Order from Scorpion

Keppel AmFELS has received a fifth order from Scorpion Offshore for a jackup rig valued at US$143 million.

This contract is signed with Scorpion's wholly-owned subsidiary, Scorpion Intrepid Ltd.

All five jackup orders have been secured within nine months of Scorpion's execution of the first construction contract in May 2005.

Said Mr Ho Cheok Yuen, President and CEO of Keppel AmFELS, "Keppel AmFELS is glad that Scorpion has chosen us to be their partner in building their fleet of rigs. Work on the first four rigs is progressing well and we expect to begin progressive delivery in the second quarter of 2007."

Like Scorpion's other four jackups, the new rig will be a LeTourneau Super 116 design equipped with leg lengths of 477ft, and capable of drilling wells up to 30,000ft deep in water depths of 350ft.

Scorpion's latest rig is named Offshore Intrepid and is scheduled for delivery in the fourth quarter of 2008.

Located in Brownsville Texas, Keppel AmFELS is one of the best-equipped offshore yards in the area, serving customers operating in the Gulf of Mexico and internationally. Currently, it is constructing five jackup rigs namely Offshore Courageous, Offshore Defender, Offshore Resolute and Offshore Vigilant for Scorpion and a KFELS Super B Class jackup rig Ocean Scepter for Diamond Offshore.

The yard is also building two accommodation platforms for PEMEX and a sludge vessel for the City of New York. The yard has also completed repair works on several Hurricane-affected rigs, Ocean Star for Diamond Offshore, GSF Arctic 1 for GlobalSantaFe, and it is in the process of completing the Transocean Marianas for Transocean. Other ongoing repair and refurbishment projects include the ENSCO 87 for ENSCO Offshore and Pride Oklahoma and Pride Tennessee for Pride International.

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 Intrepid Ltd. is a wholly-owned subsidiary of Bermuda based Scorpion Offshore Ltd., which was founded in 2005 to own and operate state-of-the-art offshore drilling rigs.

The transaction is not expected to have a material impact on the NTA or the net earnings per Keppel Corporation share for FY2006.

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