IMO ENVIRONMENTAL REGULATIONS
Are IMO regulations tough enough to keep national governments from imposing stricter measures?

Yes--Mostly
Only partly
No--expect a slew of regional regs!

Marine Log

June 22, 2007

Keppel wins rig orders worth $534 million

Singapore's Keppel FELS Limited (Keppel FELS), a wholly-owned subsidiary of Keppel Corporation Limited, has secured two rig contracts totaling $534 million.

They cover construction of a drilling/production jack-up rig and a deepwater drilling tender rig. Both rigs will be built to Keppel's proprietary design.

The first contract, worth $400 million, is for the third KFELS N Class jackup rig for Skeie Drilling and Production, a member of the Skeie Group.

The second is from repeat customer Seadrill Asia Limited for a semisubmersible drilling tender (SSDT) at $134 million.

The jack-up contract is subject to certain conditions being met by July 9, 2007 and the unit is expected to be delivered in the fourth quarter of 2010.

Developed by Keppel O&M's R&D arm, Offshore Technology Development, the KFELS N Class jackup rig provides the flexibility of having a unit that can undertake drilling and production activities concurrently.

Capable of operating in water depths of up to 430 feet and drilling depths of down to 35,000 feet, the rig will have features to readily accept process modules for production activities.

The design complies with the demanding and technically challenging requirements of rigs operating in the Norwegian sector of the North Sea.

"Having three KFELS N Class orders in less than half a year is strong endorsement for this innovative design," said Mr Choo Chiau Beng, Chairman & CEO of Keppel Offshore & Marine (Keppel O&M), parent company of Keppel FELS, "It reinforces our confidence that the rig has what it takes to meet market requirements for highly robust rigs in the North Sea type of conditions."

DRILLING TENDER

Slated for delivery at end 2009, the drilling tender will be built to Keppel FELS's proprietary KFELS SSDT 3600E design.

This new tender rig will be an enhancement of the last two KFELS SSDT 3600 design rigs, West Setia and West Berani, which Keppel FELS built for Seadrill Asia. The enhanced version includes modifications such as increased crane load capacity to 250 tonnes, four mud pumps and accommodation and services for 160 personnel.

The Keppel O&M group has built a total of five tender drilling rigs for Seadrill Asia, formerly Smedvig, since 1994.

Seadrill Asia's parent company, Seadrill Limited, has also ordered four jackup rigs with Keppel FELS, of which three are currently under construction. The first of the four, West Ceres (ex Seadrill 3), was delivered on time and within budget in 2006.

The KFELS SSDT series has been developed by Keppel O&M's R&D arm, Deepwater Technology Group. A conventional drilling tender can only be deployed next to fixed platforms, but the KFELS SSDT series, with their enhanced capabilities, can operate in deepwater up to 5,000 ft alongside Spars and Tension Leg Platforms.

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