Keppel On Track to Complete Gold Star Semisub for Brazil

Keppel FELS is on track to deliver Gold Star, the first of two DSS 38 deepwater rigs to Brazilian operator, Queiroz Galvão Óleo e Gás (QGOG) later this year.

Progressing on time and within budget, Gold Star will be the first DSS 38 rig to enter the market and support Petrobras's exploration and production activities.

Gold Star was named on Saturday, August 29, by Lady Sponsor, Fiona Steane, spouse of Christopher Steane, Global Head for Structured Finance of the rig's financiers, ING Bank.

At the ceremony, Guest-of-Honour, Rear Admiral Lui Tuck Yew, Acting Minister for Information, Communications and the Arts said, "Our homegrown companies have much to offer Brazil, and will help to pave the way in promoting greater rapport and meaningful exchanges between our economies.

"With technology innovation, execution excellence and a capable workforce as its hallmark strengths, as well as its established facilities here and in Brazil, I am confident that Keppel is well-positioned for long-term success in Brazil's fast-growing offshore market."

The design is jointly developed and owned by Keppel's Deepwater Technology Group and Marine Structure Consultants. DSS 38 is a compact and cost-effective deepwater rig designed to meet operational requirements in the deepwater "Golden Triangle" region, comprising Brazil, Africa and the Gulf of Mexico.

Antonio Augusto de Queiroz Galvão, General Director of QGOG said, "I wish to congratulate Keppel FELS for successfully meeting the milestones of our project on time.

"Confirming our company's satisfaction with Keppel's performance, we ordered last year, a sister unit to be named the Alpha Star, which will be delivered by Keppel FELS in 2011.

"We strongly believe also that the success of our second project will strengthen the partnership between Keppel and QGOG towards future projects."

Tong Chong Heong, CEO of Keppel FELS's parent company, Keppel Offshore & Marine said, "Keppel has been doing business with Brazil for more than 30 years, during which we have forged many rewarding partnerships. Together with our Brazilian customers, we have pushed boundaries to meet the unique challenges of Brazil's offshore operating environment.

"We are pleased that QGOG has chosen Keppel FELS to support its newbuild program. This not only reaffirms the growing acceptance of our DSS Series, but also Keppel's status as the Builder of Distinction in Brazil's offshore sector."

In the league of some of the world's most advanced semisubmersibles, DSS Series rigs are designed to maximize uptime with reduced emissions and discharges.

DSS 38, the latest model in this Series, is rated to drill depths of 30,000 feet below mud line in over 9,000 feet water depth. It has an operational displacement of over 38,000 tonnes and can accommodate 130 men. It also features both vertical and horizontal riser storage and is configured with eight 3000kW azimuth thrusters to keep the rig in position.

Presently under construction at Keppel FELS, QGOG's second DSS 38 unit, Alpha Star, is scheduled for delivery in mid-2011.

QGOG is one of Brazil's largest private groups in the oil and gas sector, and is supported by a 30,000-strong workforce.