Keppel Offshore & Marine

Keppel wins US$440 million twin jackup rig contract from Ensco

Press Release   •   Feb 10, 2011 14:25 SGT

Keppel FELS Limited (Keppel FELS) has secured a contract to build two enhanced KFELS Super A Class harsh environment jackup rigs from a subsidiary of Ensco plc (NYSE: ESV) at a shipyard price of about US$440 million.

These rigs are scheduled for delivery in the second and fourth quarters of 2013. As part of its contract with Keppel FELS, Ensco has options to order two more similar jackup units.

Mr Dan Rabun, Chairman and CEO of Ensco plc, said, "The new rig orders reflect our commitment to continually high-grade our fleet. Operators' requirements will continue to increase over time and it is Ensco's strategy and intention to maintain our position at the high end of the premium jackup market.

"Keppel-designed rigs, which make up about 20 percent of our current jackup fleet, have been delivering exceptional performance. The new KFELS Super A Class rigs, which are being customised to Ensco's requirements, will give us even more high-specification assets to match the drilling demand for increased drilling capabilities in each market."

Mr Tong Chong Heong, Chief Executive Officer of Keppel Offshore & Marine, said, "The KFELS Super A Class hails from our proven KFELS MOD V-A Class jackup, which has been widely deployed by our international customers, including Ensco. This new generation rig is a showpiece of our cumulative experience in designing and constructing cutting-edge harsh environment solutions.

"In choosing to build up to four units of this innovative design, our faithful customer Ensco has given strong endorsement to the KFELS Super A Class, which is well-suited for operating conditions in the UK, Danish and Dutch sectors of the North Sea. We are pleased to take our partnership with Ensco to the next level and support its ongoing enhancement of an already advanced drilling fleet."

A viable and cost-effective solution for harsh environments and cold climate areas, the new KFELS Super A Class boasts the distinctive qualities of Keppel FELS' proven jackup rig designs.

The KFELS Super A Class rig can operate in water depths of 400 feet and drill to depths of 40,000 feet. It features advanced automated drilling systems with 2.5 million pounds of static hook load, a spacious deck and comprehensive amenities for the comfort of a 150-person crew. It also has an offline stand building capability to handle drill pipes efficiently, boosting overall rig performance and productivity.

For enhanced operational safety, the KFELS Super A Class is equipped with the latest pinion overload detection, rack phase difference detection, and brake failure and overload protection devices, thus meeting even the stringent Health, Safety and Environment (HSE) standards of various sectors in the North Sea.

The above contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.

 For further information, please contact:

Ivana Chua (Ms)
Senior Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: (65) 6413 6436
Mobile: (65) 9239 1423
Email: ivana.chua@kepcorp.com

About Ensco
Ensco plc (NYSE: ESV) brings energy to the world as a global provider of offshore drilling services to the petroleum industry. With a fleet of ultra-deepwater semisubmersible and premium jackup drilling rigs, Ensco serves customers with high-quality equipment, a well-trained workforce and a strong record of safety and reliability. To learn more about Ensco, please visit our website at www.enscoplc.com. Ensco plc is an English limited company (England No. 7023598) with its registered office and global headquarters located at 6 Chesterfield Gardens, London, W1J 5BQ.

To learn more about Ensco, please visit www.enscoplc.com

About Keppel FELS
Keppel FELS is a subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), a wholly-owned company of Keppel Corporation Limited. Keppel O&M is a leader in offshore rig design, repair and construction, ship repair and conversion and specialised shipbuilding. Its near market, near customer strategy is bolstered by a global network of 20 yards and offices 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 for solutions for the offshore and marine industry.

For more information on Keppel FELS, visit www.keppelfels.com