Keppel secures repeat contract for jackup rig worth $276 million

Keppel Fels, a unit of Keppel Offshore & Marine, announced on Feb 6 that it has secured a contract from UMW Drilling.

The contract from the UMW Oil & Gas Corporation unit is for a KFELS B Class jackup rig worth US$218 million (S$276 million).

This is the third rig for UMW Oil & Gas, and delivery is slated for the third quarter of next year.

Mr Rohaizad Darus, president of UMW Oil & Gas, said: "We have taken this opportunity to acquire another KFELS B Class jackup from Keppel Fels to enable UMW Oil & Gas to accelerate the growth of our assets portfolio and meet the strong demand for premium jackup drilling rigs in the Asia Pacific region."

The KFELS B Class jackup rig can operate in depths of 400 feet of water, drill depth of up to 30,000 feet and accommodate up to 150 men.

Mr Wong Kok Seng, managing director of Keppel Fels said that having its own proprietary rig designs allows it to customise solutions for clients with a quicker turnaround time.

"This provides us with a huge competitive advantage in terms of responding to clients' needs, which are changing with the advancement of drilling technology."

The KFELS B Class rig incorporates Keppel's fully-automated high capacity rack and pinion elevating system, and self-positioning fixation system.

It also provides maximum uptime with reduced emissions and discharges.

The firm said in a statement that the new contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation for the current financial year.