Keppel Fels wins $633 million jack-up rig order

KEPPEL FELS has secured an order for a jackup rig worth US$500 million (S$633 million), its parent Keppel Corp announced today.

The contract was awarded from TS Offshore and delivery is scheduled for the first quarter of 2017.

The rig will work in waters up to 500 ft deep, drill to depths of 35,000 ft, and be equipped with a 100 ft cantilever outreach - making it the most advanced jackup to be built in Singapore so far, a Keppel spokesman said.

It is expected to be deployed in the Eastern China Sea, but will have built-in provisions to enable it to operate in the North Sea.

The rig will also be the first jackup built to Keppel's new KFels N Plus design, an upgraded version of its KFels N Class design.

Three KFels N Class rigs - designed for harsh weather conditions and water depths 400 to 500 ft - have been successfully operating in the North Sea, the spokesman said.

TS Offshore is a majority shareholder in another Keppel jackup under construction in Singapore, and four more under construction in China.

Its chairman, Dr Xiong Shaohui, said they chose to build the unit in Singapore to meet specific customer requirements.

"Keppel Fels was probably the only yard able to provide us with such a high specification rig customised to our needs that would be well received by the market," he said.

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

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