02 Aug 2013

Keppel FELS delivers another premium rig for Mexican customer

Keppel FELS has delivered a KFELS B Class jackup rig, to Constructora y Perforadora LATINA (CP LATINA), a private Mexican company in the energy sector.

The rig was named LA SANTA MARIA at a ceremony in Keppel FELS today. Delivered on time and with a perfect safety record, it will be chartered to PEMEX, Mexico's national oil company, for deployment in offshore Mexico.

LA SANTA MARIA is the first of two high-specification jackup rigs that Keppel FELS is building for CP LATINA. The second rig is on schedule to be delivered in 4Q 2013.

Mr Wong Kok Seng, Managing Director (Offshore) of Keppel Offshore & Marine and Managing Director of Keppel FELS, said, "This on time and safe delivery is a demonstration of the win-win partnership we have developed with our new customer CP LATINA. We are glad that they have chosen the KFELS B Class as their first two jackup rigs. The premier rig of its class, the KFELS B Class has a proven track record in the Gulf of Mexico.

"LA SANTA MARIA is the third such rig Keppel FELS has delivered to Mexican customers since 2012. With another nine on order, we are well placed to be the leading provider of offshore drilling solutions for the Mexican market."

Keppel's proprietary KFELS B Class jackup design is able to operate in water depths of up to 400 feet and drill to depths of 30,000 feet. Developed by Keppel's technology arm, Offshore Technology Development (OTD), the robust rig is equipped with an advanced and fully-automated high capacity rack and pinion jacking system, and Self-Positioning Fixation System.

Mr Santiago del Valle Toca, Chairman of CP LATINA, added, "We chose the KFELS B Class for its excellent track record, strong capabilities and cost-efficiencies. We were also looking for a rig that could be delivered to our timeline and this early delivery has shown that Keppel FELS is the right partner for us. As we look to expand our drilling services portfolio, the acquisition of two such rigs is a strong base for us to establish a foothold in the Mexican offshore market. We are confident that the second rig Keppel is building for us will be delivered just as efficiently, enabling us to meet the demands of the market."

Mexico's proven reserves of oil and gas at the start of 2013 is almost 14 billion barrels of crude-oil equivalent. PEMEX announced plans to add between eight and 12 offshore platforms to its drilling fleet earlier this year and unveiled investment plans of US$25.3 billion for 2013, of which US$20 billion will be targeted at upstream activities.

In addition to the second rig for CP LATINA, Keppel FELS is also building for the Mexican market - two KFELS B Class jackup rigs for PEMEX, five for Grupo R and one for Parden Holding. It recently delivered two similar rigs to Mexican customer Oro Negro while sister yard, Keppel AmFELS in Brownsville, Texas, delivered a jackup rig to Perforadora Central in April 2013 with another due for delivery in 1Q 2014.

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About CP LATINA
Constructora y Perforadora LATINA ("LATINA") is a private company with over 60 years of experience in the energy sector. Currently, it is the main geothermal drilling company in Latin America. Latina started operations in1947 in Mexico, with the drilling of oil wells; after some time, they enhanced their operations to drilling oil, gas and geothermal wells. In 1983, Latina went international with a geothermal project in Costa Rica, and in 2005 they acquired two concessions to explore, develop, merchandise and maintain two oil fields in the Republic of Guatemala. Currently, their expansion on energy projects continues within the American continent. For more information, please visit http://www.cplatina.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 FELS is a leading designer, builder and repairer of high-performance mobile offshore rigs. Its portfolio of proprietary designs and floating production solutions meets a broad spectrum of operating requirements, including deep waters and harsh environments.

As a group, Keppel O&M is also a leader in 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

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