Offshore staff

Keppel FELS Ltd. secured a contract to build a $130 million jackup for Gulf Drilling International Ltd.

The jackup, to be namedGULF-5, will be delivered by the end of 2007.

This is GDI's second jackup with Keppel FELS and follows shortly after the first rig,GULF-4, was signed in December 2004. GULF-4 is due for delivery at the end of 2006.

BothGULF-4 and GULF-5 are of Keppel's proprietary KFELS B class design, and suitable for operation in the Arabian Gulf and Indian waters. When completed, they will form GDI's fleet of five rigs.

07/29/05