Keppel FELS Wins Repeat Semisub Order from Maersk

Keppel FELS has secured a contract to build a repeat ultra deepwater semisubmersible for A.P. Moller - Maersk for S$415 million.

This order brings the level of new contracts secured to date in 2006 to above S$4 billion for the whole of Keppel Offshore & Marine (Keppel O&M) group.

This contract follows the exercise of an option given to Maersk Contractors when it ordered two semis in May 2005.

This will be the fourth semi that Keppel FELS is constructing for Maersk Contractors. Keppel FELS successfully delivered the first semi, Maersk Explorer to Maersk Contractors in 2003. In addition to the deepwater semis, Keppel FELS is currently also building four jackup for Maersk Contractors.

Mr. Claus V. Hemmingsen, CEO of Maersk Contractors says, "The increasing demand for energy will continue to spur growth in development activities in deep water. As such, there is a need for more highly efficient rigs to meet this growing need.

"We are happy with the progress of our two deepwater semis currently under construction at Keppel FELS and have decided to award the yard the contract to build our next newbuild. Keppel FELS has proven that it is a competent partner for the provision of cost effective and capable rigs."

Mr. Tong Chong Heong, Managing Director & Chief Operating Officer of Keppel O&M, said, "Deepwater oil and gas production activities have been increasing and expenditures are predicted to reach US$20 billion per year by 2010.

"We at Keppel recognize this trend towards deepwater exploration and production and have positioned ourselves to offer an entire package of deepwater technology solutions.

"We are pleased about Maersk Contractors' confidence in Keppel's abilities to provide solutions that will meet stringent requirements to quality and innovation."

Under the agreement, Maersk will supply the drilling and other equipment. Similar to the first two rigs, this new semi will be built to the proprietary design, the DSS-21, co-developed by Keppel's Deepwater Technology Group (DTG).

The semi will be equipped with a dynamic positioning system, which can be attached to a prelaid mooring system. It is suited for operations in moderate environmental conditions such as West Africa, Brazil, Gulf of Mexico and Southeast Asia in water depths of 3,000 meters or 10,000 feet. Each rig can accommodate up to 180 persons.

Delivery of this new deepwater semi is expected during first quarter of 2010. Meanwhile, the two semis under construction are scheduled for delivery in first quarter 2008 and 2009 respectively.

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