01 Nov 2007

Keppel AmFELS to build four jackup rigs worth US$780 million

Keppel AmFELS Inc. (Keppel AmFELS), the US wholly-owned subsidiary of Keppel Offshore & Marine Limited (Keppel O&M), has secured contracts from Rowan Companies, Inc. (Rowan) to build four jackup rigs.

Each rig is valued at US$195 million, which includes owner furnished equipment.

“The construction contracts with Keppel AmFELS afforded us the opportunity to accelerate the expansion of our offshore drilling business by partnering with a first class organisation and shipyard,” said Mr Danny McNease, Chairman and Chief Executive Officer of Rowan.

Mr Tong Chong Heong, Managing Director & COO of Keppel O&M and Chairman of Keppel AmFELS, said, “Rowan is a world class drilling contractor and a new customer to Keppel. We are glad that they recognise Keppel’s capability and commitment to meet customer requirements on time, within budget and without incident.

“We endeavour to build a long term partnership with them based on integrity, reliability and delivery of quality products.”

Deliveries of the four rigs are slated progressively between the second quarter of 2010 through to 2011.

The rigs will be built to the LeTourneau Super 116E design with initial leg lengths of 410ft for operating in water depths of up to 350ft and drilling depths of down to 30,000ft. When completed, the rigs will be capable of drilling high-pressure, high-temperature and extended-reach wells.

Keppel AmFELS has just delivered the second rig to Scorpion Offshore and is constructing six more jackups: three for Scorpion Offshore; and one each for Atwood Oceanics, Diamond Offshore and Perforadora Central. It is also building a sludge vessel for the City of New York.

A wholly-owned subsidiary of Keppel Corporation through Keppel Offshore & Marine, Keppel AmFELS engages in the construction, refurbishment, conversion, life extension and repair of a comprehensive range of mobile rigs and platforms. Located in Brownsville Texas, Keppel AmFELS is one of the best-equipped offshore yards in the region.

Rowan Companies, Inc. is a major provider of international and domestic offshore contract drilling services. The Company also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries. The Company's stock is traded on the New York Stock Exchange.

The contracts are not expected to have material impact on the net tangible assets and earnings per share of Keppel Corporation for the financial year 2007.

For further information, please contact

Grace Chia
Assistant Manager
Keppel Group Corporate Communications
Tel: (65) 64136 434
Mobile: (65) 9694 1328
Email: grace.chia@kepcorp.com

Attachments:

Keppel AmFELS is the premier offshore yard in the Gulf of Mexico. With this new order, it is constructing ten newbuild jackups and a sludge vessel and is undertaking several repair and refurbishment projects.

Download - photo high res