Keppel Secures Rig Order for US$180 Million
Keppel FELS has secured an order to construct the first jackup rig for Mercator Lines Ltd for US$180 million. This includes the design, engineering and construction of the rig as well as costs in getting the rig operationally ready.
To be delivered in first quarter 2009, the new rig will be built to Keppel's proprietary KFELS B Class jackup rig. It will be further customized to meet the owner's operational requirements in water depths of up to 350 feet and readily upgradeable to 400 feet. This premium jackup rig will have a drilling depth of 30,000 feet and can accommodate 112 men.
Said Mr. Atul J. Agarwal, Joint Managing Director of Mercator Lines Ltd, "As we expand our services into offshore rigs, we recognize the importance of working with the right shipyard for our first jackup. We believe that Keppel FELS, with their track record in the design and construction of rigs, is the right choice to help us to offer premium services."
Mr. Tong Chong Heong, Managing Director & Chief Operating Officer of Keppel Offshore & Marine Ltd (Keppel O&M), said, "Keppel is glad to partner Mercator in their vision of expanding into the offshore exploration and drilling sector. We are committed to help them meet expectations as a long-term oil and gas player." Keppel had undertaken the fast-track conversion of a Floating Storage and Offloading (FSO) vessel, FSO Devsi, for Mercator Line, in 2004. The vessel is now gainfully deployed in the Indian Sea.
Mercator Lines Ltd is the second largest private sector shipping company in India. The listed Company is an established player in the marine transport industry.
Keppel FELS is a wholly-owned subsidiary of Keppel Corporation Limited through Keppel O&M, which a leader in offshore rigs, ship repair and conversion as well as 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.
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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