Keppel’s Brazilian yard to upgrade third Noble drillship for US$152 million

22-December-2009

Shortly after securing two drillship upgrading jobs from Noble Corporation (Noble) in late November 2009, Keppel Offshore & Marine Ltd’s (Keppel O&M) subsidiary, Keppel FELS Brasil, has won another contract from Noble to upgrade and repair a third Brazil-based drillship for US$152 million (S$213.8 million). This brings the total sum of drillship contracts secured in recent weeks by Keppel FELS Brasil from Noble to US$456 million (S$641.3 million).

The scope of work covers the fabrication, repair and replacement of components, including the stern section, accommodation blocks, sponsons and heliport. The work on the three drillships will be done sequentially. This will begin with the arrival of the first drillship at BrasFELS by early 2011 and is anticipated to conclude during the second half of 2013.

Mr Chow Yew Yuen, President, Keppel Offshore & Marine USA, said, “We are greatly encouraged that Noble has chosen Keppel FELS Brasil again. We are confident of affirming their trust in our commitment to deliver the projects safely, on time and within budget.

“Today, as the most comprehensive offshore and marine facility in Latin America, BrasFELS is in a strong position to help meet Brazil’s requirements for greater local content, and to give value to Petrobras and drillers operating in Brazil and the region.

“Backed by the collective strength and proven track records of our yards in the US Gulf of Mexico and Brazil, Keppel O&M is fully primed to be the choice offshore and marine partner for the Americas.”

Noble is a leading offshore drilling contractor for the oil and gas industry. Noble performs, through its subsidiaries, contract drilling services with a fleet of 62 offshore drilling units (including three rigs currently under construction) located worldwide, including in the Middle East, India, the U.S. Gulf of Mexico, Mexico, the Mediterranean, the North Sea, Brazil, and West Africa. Additional information on Noble Corporation is available via the worldwide web at http://www.noblecorp.com.

Keppel FELS Brasil is a wholly owned subsidiary of Keppel Corporation Limited, through Keppel O&M, a leader in the design and construction of 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 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.

The above contract is not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the financial years ending 2009 and 2010.

Keppel Corporation Limited, press release