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Marine Log

Offshore Courageous launch

November 6, 2006

Keppel AmFELS launches first Scorpion jackup

Keppel AmFELS Inc., in Brownsville, Texas,tis expected to deliver the first of five jackup rigs on time and within budget for Scorpion Offshore Ltd.

Keppel AmFELS, the U.S. wholly-owned subsidiary of Keppel Offshore & Marine Limited successfully launched the premium rig Offshore Courageous on November 4, 2006, which marked the completion of the hull works, a major milestone in its construction of the jackup.

Mr Jon Cole, CEO of Scorpion Offshore, said, "The launch of Offshore Courageous is highly significant in the development of Scorpion Offshore. Thanks to the efforts of the entire Scorpion team, particularly our Brownsville construction office, as well as our shipyard, Keppel AmFELS, and our major suppliers, LeTourneau, National Oilwell Varco, Cameron and Lewco.

"We remain on track for an on-time on-budget delivery."

The Offshore Courageous will now undergo final outfitting, installation of the drilling equipment and remaining leg sections and commissioning prior to delivery in May 2007.

Mr Ho Cheok Yuen, President and CEO of Keppel AmFELS, said, "We are committed to our delivery schedule for Offshore Courageous, and I am pleased that we are progressing as planned for our first rig for Scorpion Offshore.

"Fabrication of the other four Scorpion rigs is also on course as scheduled. We expect to begin progressive delivery of the five jackup rigs beginning with the second quarter of 2007."

The other four Scorpion rigs are named Offshore Defender, Offshore Resolute, Offshore Vigilant and Offshore Intrepid.

All five rigs are built to the LeTourneau Super 116 design, with leg lengths of 477 ft.

Suited for both international operations as well as deep gas drilling in the Gulf of Mexico, the rigs are capable of drilling down wells of up to 30,000ft in water depths of 350ft.

Apart from the five Scorpion rigs, Keppel AmFELS is also constructing a sludge vessel for the City of New York; a KFELS Super B Class jackup rig Ocean Scepter for Diamond Offshore; and a LeTourneau Enhanced S116 jackup rig Atwood Aurora for Atwood Oceanics.

Other ongoing repair and refurbishment projects include the semisubmersible drilling rig Ocean Saratoga for Diamond Offshore, the semisubmersible drilling rig Kan Tan IV for Beijing Zhiyuan Industries Company and managed by Maersk Contractors, and jackup rigs Pride Oklahoma and Pride Tennessee for Pride Offshore.

A wholly-owned subsidiary of Keppel Corporation through Keppel Offshore & Marine, Keppel AmFELS engages in the construction, refurbishment, conversion, life extension and repair of a complete range of mobile drilling rigs and platforms. Its comprehensive facilities are first class, including a drydock capable of docking the largest semisubmersible drilling units, and a modern steel processing plant.

Scorpion Offshore Ltd. is a Bermuda based corporation founded in 2005 to own and operate state-of-the-art offshore drilling rigs.

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