Keppel FELS wins contract for $110-million jackup

Keppel FELS Ltd., a wholly-owned subsidiary of Keppel Corp. Ltd., has received a contract to build a KFELS B Class jackup valued at $110 million for Gulf Drilling International Ltd., Qatar's first national drilling company.

Keppel FELS Ltd., a wholly-owned subsidiary of Keppel Corp. Ltd., has received a contract to build a KFELS B Class jackup valued at $110 million for Gulf Drilling International Ltd., Qatar's first national drilling company.

The jackup, *IGULF-4, suited for operation in the Arabian Gulf and Indian waters, will be built to Keppel FELS' proprietary design. It will be capable of operating in 300 ft of water, drilling to 30,000 ft, and accommodating 110 personnel.

Four previously built KFELS B Class jackups are working worldwide, with six more currently under construction at Keppel FELS.

Keppel FELS is also building the jackup rigAl Hail for Abu Dhabi's National Drilling Co. (NDC), and through associate Arab Heavy Industries PJSC is upgrading and refurbishing two jackups – GULF-2 and NPCC SEP-350 – for GDI and National Petroleum Construction Co., respectively.

GDI is a 60/40 joint venture established in May 2004 by Qatar Petroleum and Japan Drilling Co. The Doha-based JV is acquiring used and newbuild rigs to meet the escalating demands for drilling rigs in Qatar and the region.

The contract is not expected to have material impact on the net tangible assets and earnings per share of Keppel Corp. for the financial year 2005.

12/08/04

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