Keppel FELS to build seventh ENSCO deepwater rig worth US$560 million

Keppel FELS Limited (Keppel FELS) has won the contract to build the seventh ENSCO 8500 Series® deepwater semisubmersible (semi) worth US$560 million. This sum includes equipment specified by the owner.

To be delivered in the second half of 2012, the ENSCO 8506 will be the seventh consecutive semi that Keppel FELS is constructing for ENSCO International Incorporated (ENSCO). The contract follows shortly after the award of the sixth semi, ENSCO 8505, that was announced on 1 June 2008.

Mr Daniel W. Rabun, Chairman, President and CEO of ENSCO said, "Working with a leading shipyard that is familiar with our needs will enable us to advance our deepwater strategy more effectively.

“As we continue to execute on our strategy to expand our deepwater presence, we again look forward to working with Keppel FELS on this important project. Our US$3.1 billion investment in the ENSCO 8500 Series® rigs demonstrates our commitment to playing a meaningful role in the growing deepwater market. Only two other companies will have ultra-deepwater semisubmersible rig fleets equal to the size of the ENSCO fleet."

The first unit in the seven-strong fleet of 8500 Series® semis was contracted in 2005 and is on track for shipyard delivery in the third quarter of this year. It has been chartered to Anadarko and Eni for operations in the U.S. Gulf of Mexico.

Mr Choo Chiau Beng, Chairman and CEO of Keppel O&M said, “This contract to build the seventh semi for ENSCO is a vote of confidence from a top-notch drilling contractor for our reliability as a partner of choice. We remain committed to giving ENSCO our full support and contributing to the growth of their high quality deepwater fleet.”

The ENSCO 8506 is capable of drilling in up to 8,500 feet of water. Her features include a two million pound quad derrick, offline pipe handling capability, 35,000 ft drilling capacity, and station keeping capabilities meeting DP2 requirements. With these features, the 8500 Series rigs will be especially well-suited for deepwater development drilling.

ENSCO, headquartered in Dallas, Texas, owns and operates a modern fleet of offshore drilling rigs servicing the petroleum industry on a global basis.

Keppel FELS is a wholly-owned subsidiary of Keppel Corporation Limited, through Keppel O&M, a leader in offshore rigs, ship repair and conversion and specialised shipbuilding. Keppel O&M's near market, near customer strategy is bolstered by a global network of 20 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 for the offshore and marine industry.

The ENSCO 8506 contract is not expected to have any material impact on the net tangible assets or earnings per share of Keppel Corporation for the current financial year.

For further information, please contact

Ivana Chua
Assistant Manager
Keppel Group Corporate Communications
Tel: (65) 6413 6436
HP: (65) 9239 1423
Email: ivana.chua@kepcorp.com

Attachments:

Keppel FELS is constructing the entire fleet of seven semis based on ENSCO’s proprietary 8500 Series® design. The first of these rigs, ENSCO 8500 (in picture), is on track for shipyard delivery in the third quarter of this year.