Keppel Set to Build 6th ENSCO Semi, Worth $537M

Keppel FELS Limited has won a contract to build a US$537 million ultra-deepwater semisubmersible (semi) drilling rig from a subsidiary of ENSCO International Incorporated.

This contract follows shortly after of the award of the fifth semi, ENSCO 8504, that was announced on May 6, 2008.

This latest rig, ENSCO 8505, is the sixth consecutive semi of the ENSCO 8500 Series that Keppel FELS is constructing, and is scheduled for delivery in the first half of 2012.

"Deepwater has become a very important part of our business," said Daniel W. Rabun, Chairman, President and CEO of ENSCO. "We estimate that our deepwater fleet, including the 8500 Series semis, will contribute approximately 30% of our total revenue when in operation."

"We are pleased that ENSCO has entrusted us with the construction of two of their latest deepwater rigs this year," said Choo Chiau Beng, Chairman and CEO of Keppel O&M. "We will continue to give full support to our valued customer and partner, and contribute to the growth of a high quality deepwater fleet."

Keppel FELS has delivered nine new jackup rigs to ENSCO, and is constructing six semis based on ENSCO's proprietary design. The first semi of ENSCO 8500 Series is on track for delivery in the third quarter of this year, and has been contracted in Gulf of Mexico to Anadarko and Eni.

The ENSCO 8505 is capable of drilling in up to 8,500 feet of water. Her features include a two million pound quad derrick, offline pipe handling capability, 35,000 ft drilling capacity, and station keeping capabilities meeting DP2 requirements. With these features, the 8500 Series rigs will be especially well-suited for deepwater development drilling.

The ENSCO 8505 contract is not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation for the financial year ending 31 December 2008.

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