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Marine Log

November 12, 2007

Keppel AmFELS delivers second Scorpion

Keppel AmFELS Inc., the U.S. wholly-owned subsidiary of Keppel Offshore & Marine Limited (Keppel O&M), has delivered its second jackup drilling rig for Scorpion Offshore (Scorpion) on time and within budget.

Delivery of Offshore Defender comes just five months after Keppel AmFELS completed its first jackup rig for Scorpion earlier this year.

Scorpion has contracted Keppel AmFELS to build a fleet of five drilling rigs. Construction of the remaining three is progressing well on track, and the rigs are scheduled for delivery through 2008 to 2009.

Offshore Defender was christened by Mrs. Brenda B. Harvey, wife of Scorpion's Director, Michael L. Harvey, at the Keppel AmFELS yard in Brownsville, Texas on November 10, 2007.

Mr Tong Chong Heong, Managing Director and COO of Keppel O&M said, "Keppel AmFELS has the experience and expertise to fulfil its commitment to its customer to construct and deliver a high quality premium jackup drilling rig within a tight schedule. This is no mean feat, especially during this period when labour and materials are very tight."

This year, Keppel AmFELS has invested close to US$3 million for the training and development of its workforce. Recognizing Keppel AmFELS's commitment to the training of new and existing employees, the Texas Workforce Commission has recently awarded Keppel AmFELS and four other companies a total of US$733,538 for the creation and upgrading of skill-related jobs.

In addition to the construction of the Scorpion rigs, Keppel AmFELS is currently building a jackup rig each for Diamond Offshore, Atwood Oceanics and Perforadora Central. It has just secured an order of four jackup rigs from Rowan Companies.

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