Keppel O&M wins US$226m jack-up order

Subsidiary of Singapore-listed Falcon Energy Group awarded Keppel Fels an order for a US$226 million KFELS B Class jack-up.

Get the full story from The Business Times.

Here is the press release from Keppel Fels:

Keppel FELS Limited (Keppel FELS), a wholly-owned subsidiary of Keppel Offshore & Marine (Keppel O&M) has secured a contract from Singapore-listed Falcon Energy Group Limited (Falcon Energy) through its subsidiary, FTS Derricks, to construct a KFELS Super B Class jackup rig.

Mr Wong Kok Seng, Managing Director (Offshore) of Keppel O&M and Managing Director of Keppel FELS said, "Falcon Energy entered the offshore oil drilling business when they ordered two jackup rigs from China in 2011. We are delighted that Falcon Energy has chosen the KFELS Super B Class design for their new high specification jackup rig, which will be built at our yard in Singapore.

"So far this year, Keppel FELS has already delivered six rigs ahead of schedule, safely and on budget. For the latest delivery of AOD II, a KFELS B Class jackup, to Asia Offshore Drilling, we received a bonus of about US$2 million for completing the rig 62 days early. With another 21 KFELS B Class/ Super B Class rigs on order including this latest contract, it is today the industry benchmark for premium jackups rigs. We look forward to providing Falcon Energy and their partners with a premium, safe and efficient rig with on schedule delivery."

Customised to Falcon Energy's requirements, the KFELS Super B Class jackup rig is equipped with a high capacity hook load of two million pounds for operations in high temperature and high pressure wells. Developed by Keppel O&M's technology arm, Offshore Technology Development, the KFELS B Class/Super B Class jackup design provides maximum uptime with reduced emissions and discharges.

A new customer to Keppel FELS, Falcon Energy is a leading player in the regional Offshore Marine and Oil and Gas sectors.

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.