Keppel Wins $96 Million Contract for New Jackup

Keppel FELS Limited, the offshore arm of Keppel Offshore & Marine (Keppel O&M), has received a letter of award for a US$96 million contract to build a jack-up rig for Abu Dhabi's National Drilling Company (NDC).

A customized jack-up design with a leg length of 307 feet, the cost-effective rig is suitably tailored to operate in benign Middle East conditions of water depths up to 150 feet.

It will be fitted with Keppel O&M's proprietary jacking and fixation systems, and will be completed in third quarter 2005.

Mr Abdul Munim Saif Al Kindy, General Manager of NDC, shared, "This is the first newbuild rig that NDC is building in 20 years, and our first turnkey jack-up rig project with Keppel FELS.

"Keppel FELS' track record of design, engineering and construction capabilities is impressive. We trust that they will meet our need for a rig with overall superior efficiency and reliable, modern technology."

Mr. Tong Chong Heong, Managing Director and Chief Operating Officer of Keppel O&M, said, "In a competitive environment, it pays to have our own design capabilities. This gives us the necessary control and flexibility to configure the new rig in accordance with NDC's requirements at competitive pricing."

KFELS is a leader in the construction of offshore rigs, and has built more than 60% of the world's jack-ups on order in the last decade.

Keppel O&M, which has a network of 16 yards worldwide including the Asia Pacific, Gulf of Mexico, Brazil, Caspian Sea, Middle East and the North Sea, is a wholly-owned subsidiary of Singapore-listed Keppel Corporation Limited.

One of the Middle East's largest drilling contractors, NDC is the wholly-owned subsidiary of Abu Dhabi National Oil Company (ADNOC). With more than 30 years of experience, it has built a reputation for excellence with 15 onshore, nine offshore and six water well rigs in operations.

For this project, Keppel FELS is represented by EMDAD who is Keppel FELS' agent in United Arab Emirates.

The contract secured is not expected to have any significant impact on the net tangible assets and earnings per share of Keppel Corporation for the financial year ending December 31, 2003.