Keppel Enters Indian Market with US$171 Million Rig Order

Keppel FELS has secured a contract from an India-based drilling contractor, Discovery Hydrocarbons Pvt Ltd, a Jindal Group Company, to build a KFELS B Class jackup valued at US$171 million.

This includes the design, engineering and construction of the rig as well as costs in getting the rig operationally ready. Designed for water depths of up to 350 feet, the rig can be deployed in environments such as Indian Ocean, Gulf of Mexico, West Africa and South East Asia. It can also be readily upgraded to 400 feet water-depth.

Due for delivery in fourth quarter 2008, the new rig has a drilling depth capability of 30,000 feet and accommodation for 112 persons.

With this new order, there are currently seven KFELS B Class rigs in operation and another 16 rigs under construction.

Said Mr. Sam Malhotra, Director of Discovery Hydrocarbons Pvt Ltd, "We are glad to work with Keppel FELS for our first newbuild jackup. Keppel FELS has a commendable track record in design, construction and timely delivery of jackups. Their KFELS B Class, a tried and proven design in many offshore environments, has been verified to meet our drilling needs.

"We look forward to developing and strengthening our partnership with Keppel FELS as we serve the Indian and international offshore market."

Mr. Tong Chong Heong, Managing Director/Chief Operating Officer of Keppel Offshore & Marine (Keppel O&M), said, "The Indian Ocean which has significant oil and gas reserves is one of the world's most sought-after areas. With this new contract, Keppel Offshore & Marine is poised to entrench its footprint in the offshore Indian market as well."

"We are glad to partner Discovery Hydrocarbons as it grows their fleet of rigs to provide solutions for the offshore market internationally."

Keppel FELS is a wholly-owned subsidiary of Keppel Corporation, through Keppel Offshore & Marine, a leader in offshore rigs, ship repair and conversion and specialized shipbuilding. Keppel O&M's 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 the provider of choice and partner in solutions for the offshore and marine industry.

Discovery Hydrocarbons Pvt Ltd is one of the most reputed offshore drilling contractors successfully operating in India under contracts from ONGC Limited, the national oil company of India.

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

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