07 Oct 2011

Keppel to build third Super A Class jackup for Ensco at US$245 million

Keppel FELS Limited (Keppel FELS) has secured a contract to build an enhanced KFELS Super A Class harsh environment jackup rig from Ensco plc (NYSE: ESV) for US$245 million. The rig is scheduled for delivery in 3Q 2014.

This contract arose from the exercise of an option which was part of Ensco's order of two KFELS Super A Class rigs on 10 February 2011.

Mr. Dan Rabun, Chairman and CEO of Ensco plc, said, "Ensco's new series of jackup rigs are enhanced versions of the KFELS Super A Class design that will provide increased levels of efficiency for customers. By building these new Super A Class jackups, we will continue Ensco's tradition of delivering leading customer service with one of the largest and youngest premium jackup fleets in the world.

"Standardisation across our 11 KFELS design rigs improves reliability for customers as we benefit from more efficient construction, training, daily operations, inventory management, and repairs and maintenance."

Mr Tong Chong Heong, CEO of Keppel Offshore & Marine, added, "We are glad that Ensco has chosen to build another rig to the KFELS Super A Class design. We are confident this new generation rig will meet the requirements for robust drilling solutions in harsh environments.

"The KFELS Super A Class has been customised to meet Ensco's needs and demonstrates the win-win partnership we have with Ensco in growing both our companies to the next level. From the development of designs to the execution of projects, we have built up a proven track record with our customers around the world."

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 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.

The introduction of the KFELS Super A Class is a continuation of the proven KFELS harsh environment class rig which has been operating very successfully in the North Sea since the 1980s.

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.

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About Ensco

Ensco plc (NYSE: ESV) brings energy to the world as a global provider of offshore drilling services to the petroleum industry. We have the world's second largest offshore drilling fleet comprised of dynamically-positioned drillships and semisubmersibles, moored semisubmersibles and premium jackups. Ensco is ranked #1 for overall customer satisfaction in the leading independent survey conducted by EnergyPoint Research with #1 ratings in 14 of 16 separate categories. Ensco plc is an English limited company (England No. 7023598) with its registered office and corporate 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

For further information, please contact:

Media
Eva Ho
Deputy General Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: (65) 6413 6424
Email: eva.ho@kepcorp.com  

Investor Relations
Chua Ying Ying
Assistant General Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: (65) 6413 6295
Email: yingying.chua@kepcorp.com