24 Apr 2006

Keppel to deliver another KFELS B Class jackup on time

Keppel FELS Limited (Keppel FELS) will deliver a jackup to a wholly-owned subsidiary of SeaDrill Management (SeaDrill) on time and within budget. This is the third KFELS B Class rig that Keppel has completed within the first four months of 2006.

During the christening ceremony of the jackup on 21 April 2006, Mr Choo Chiau Beng, Chairman & CEO of Keppel Offshore & Marine Limited (Keppel O&M), shared with the 300-strong guests, “The on-time delivery of the jackup is a showcase of the good management and execution of Keppel FELS. Its open and transparent communication and close co-operation with SeaDrill have immensely contributed to the success of the project.”

This rig is the first of four jackups that Keppel FELS is building for SeaDrill. Construction of the other three rigs is progressing well in accordance to schedule. Their expected deliveries are between mid 2007 and second quarter 2008.

Keppel FELS secured the first jackup contract in March 2004 with Odfjell Drilling, which ordered a second rig in March 2005. In mid 2005, SeaDrill acquired Odfjell Invest Ltd, the holding company for the rigs. The right to exercise Odfjell’s option to a third rig was then assigned to SeaDrill. The fourth jackup rig order was made by Seatankers Management Co. Ltd, which also assigned its rights to the rig to SeaDrill.

Mr Choo added, “Keppel FELS and SeaDrill share a win-win partnership. We are both committed to ensure that a high quality premium rig leaves our yard on time to work for its operator, TOTAL.”

The rig was named SEADRILL 3 by Mrs Chantal Guys, wife of Guest-of-Honour Mr Philippe Guys, Vice President of TOTAL E&P, under the evening sky amid a fanfare of Norwegian themed cultural performances at Keppel FELS Pioneer yard.

The performances, which delighted the guests, included a choir in the Bunad, the Norwegian national costume; a light display simulating the Northern Lights, one of nature’s splendour seen often in the northern hemisphere; and a Troll Dance to a Renaissance music masterpiece as these mythological cave giants pranced about aboard SEADRILL 3.

Upon its delivery in May 2006, SEADRILL 3 will be engaged by TOTAL and deployed in Nigeria for two years. It will be capable of operating in 350 feet water depth, drilling down to 30,000 feet and accommodating 110 men.
Built to the tried and tested KFELS B Class design, SEADRILL 3 will join the ranks of seven other such rigs operating in different parts of the world. Currently, another 19 KFELS B Class rigs are under construction at Keppel FELS and one in Keppel AmFELS. This represents a total market share of 46% drilling jackups on order being built to the KFELS B Class design.

Keppel FELS is a wholly-owned subsidiary of Keppel Corporation Limited through Keppel O&M, which is a leader in offshore rigs, shiprepair and conversion and specialised shipbuilding. Keppel O&M’s near market, near customer strategy is bolstered by a global network of 17 yards 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 in solutions in the offshore and marine industry.

SeaDrill is a Bermudian company listed on the Oslo Stock Exchange. With this order, SeaDrill has five jackup rigs, four semisubmersibles and two drillships under construction. The Company has also recently acquired 53% interest in Norwegian drilling contractor Smedvig ASA.

For further information, please contact

Sarah Seah
Deputy General Manager
Keppel Group Corporate Communications
Tel: (65) 64136 420
Email: sarah.seah@kepcorp.com

This press release is also available on www.kepcorp.com and www.keppelom.com

Attachments:

The moment of jubilation for project teams from Keppel FELS and SeaDrill Management as they celebrate the christening of the KFELS B Class jackup rig, SEADRILL 3.

Performances such as this choir dressed in the Bunad, the Norwegian national costume, delighted guests at the christening ceremony for the KFELS B Class jackup rig, SEADRILL 3, being completed by Keppel FELS.

Download - Speech by Mr Choo Chiau Beng

SEADRILL 3 is the third KFELS B Class jackup that Keppel is delivering within the four months of 2006.