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Keppel FELS contracted to build three jackup rigs costing USD 650m

13th February 2014

Keppel FELS Limited awarded two contracts from Fecon to build three KFELS B Class jackup rigs

Fcecon order three KFELS B Class jackup rigs from Keppel

Keppel FELS Limited has been awarded two contracts to build three KFELS B Class jackup rigs estimated to be about USD 650m from new customer Fecon International Corp. (Fecon).

Supported by industrial entrepreneur, A.P. Dobrov, Fecon is a new addition to the offshore oil and gas industry, and is targeting the growing offshore drilling markets of Africa, Middle East, and Southeast Asia.

Fecon's leadership is well connected and has the experience and knowledge of working in Russia and has recognized offshore drilling in Russia as a market with good growth opportunities.

The three rigs are scheduled to be delivered gradually by the second half of 2016.

A.P. Dobrov, who represents Fecon said, "The International Energy Agency estimates oil demand in the world to increase by 1.3 million barrels per day in 2014 and Barclays has forecast global E&P spending to reach a new record of US$723 billion in 2014, an increase of 6.1% from US$682 billion in 2013. There is a need for more high specification jackup rigs as the replacement cycle continues and we believe the robust KFELS B Class rig will be the most efficient rig in the greatest number of locations.”

Dobrov added that "Building three premium rigs at the same time will enable us to accelerate our presence in this industry and establish ourselves as a serious drilling contractor in the market. Being a new player, teaming up with the world's leading rig builder, Keppel FELS, will help fast track our entry into the market. Their track record of delivering on time, without incidents and on budget will ensure we get maximum value and returns on our investment."

The KFELS B Class rig is able to function in water as deep as 400 feet and drill to more than 30,000 feet deep.

Mr Wong Kok Seng, managing director of Keppel O&M and Managing Director of Keppel FELS said, "We are pleased that new customer Fecon has chosen to build three KFELS B Class rigs as the basis for their fleet of jackups. Our KFELS B Class rigs are the industry benchmark for jackup rigs with more than 50 delivered and operating successfully in various parts of the world including Southeast Asia, the Middle East, Gulf of Mexico and the Black Sea.”

He added that "Their efficiency, reliability, ease of operation as well as safety and environmental features make them the default rig of choice for both experienced and new operators. With these new orders, Keppel O&M currently has 27 KFELS B Class rigs on order."

Offshore Technology Development and Bennett Offshore, both technology divisions under Keppel, built the KFELS B Class which is customised to operate in all kinds of environments and has an enhanced leg design. The design includes Keppel's fully-automated high capacity rack and pinion jacking system, and Self-Positioning Fixation System.


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