Keppel divests entire stake in ultra deepwater tender rig

Offshore staff

SINGAPORE -- Keppel Offshore & Marine Ltd. subsidiary Keppel FELS Ltd. will divest its entire 72% interest in semisubmersible rig, West Berani, to SeaDrill Asia Ltd. for $72 million.

This divestment follows the completion of the semisubmersible drilling tender (SSDT), which was delivered on time Wednesday, Dec. 13.

In May 2005, Keppel FELS entered into an agreement with SeaDrill Asia, formerly Smedvig Asia, to own and operate the SSDT on a 72:28 basis. SeaDrill Asia had the option to exercise Keppel FELS' interest in the rig upon completion.

This is the fifth deepwater tender drilling rig that Keppel has built for SeaDrill Asia since 1994. The first of the series,West Pelaut, was the world's primary purpose-built SSDT for tender-assisted drilling. Three more SSDTs, West Menang, West Alliance, and West Setia, each with increased variable deckloads, were built prior to West Berani.

West Berani has been contracted by the consortium of Esso Production Malaysia Inc, Newfield Malaysia, and Nippon Oil, for two years. It will be deployed off Kuantan, in East Malaysia.

12/13/2006