Keppel to build Saudi Aramco’s first purpose-built jackup

27-January-2010

Keppel FELS Limited (Keppel FELS) has secured a contract from Aramco Overseas Company B.V., a subsidiary of Saudi Aramco, the world’s largest producer and exporter of crude oil and natural gas liquids, to build a customised KFELS Super B Class jackup rig.

The contract is subject to a notice from the owner to proceed with construction by May 2010.

Upon rig delivery, which is slated in the second half of 2012, the unit will be deployed by Saudi Aramco in the Middle East.

Mr Wong Kok Seng, Executive Director of Keppel FELS, said, “We are pleased to usher in 2010 with a newbuild project for Saudi Aramco. This is an encouraging development, signalling that confidence is gradually returning to the industry.

“In the current market, owners and operators are on the look-out for even more innovative and cost-effective solutions that can be delivered as promised.

“With a record-setting number of 13 newly built rigs delivered in 2009, Keppel FELS has proved its ability to meet these requirements and more. Backed by strong in-house engineering expertise, these rigs were ready to start work as soon as they arrived on location.

“The fact that Saudi Aramco has chosen Keppel to build their very first purpose-built, next-generation mobile offshore drilling rig based on our proprietary design strongly endorses our reputation for excellence.”

To date, 31 KFELS B Class rigs have already been delivered with another two under construction.

This contract is not expected to have any material impact on the net tangible assets or the earnings per share of Keppel Corporation Limited for the financial year ending December 2010.

About Keppel FELS
Keppel FELS is a wholly-owned subsidiary of Keppel Corporation, through Keppel O&M, a leader in offshore rig design, construction and repair, shiprepair 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.

About Saudi Aramco
Owned by the Saudi Arabian Government, Saudi Aramco is a fully-integrated, global petroleum enterprise, and a world leader in exploration and producing, refining, distribution, shipping and marketing. The company manages proven reserves of 260 billion barrels of oil and manages the fourth-largest gas reserves in the world, 253.8 trillion cubic feet. In addition to its headquarters in Dhahran Saudi Arabia, Saudi Aramco has affiliates, joint ventures and subsidiary offices in India, China, Japan, the Netherlands, the Republic of Korea, Singapore, Malaysia, the United Arab Emirates, the United Kingdom and the United States. For more information, go to www.saudiaramco.com

Keppel Corporation Limited, press release