Keppel to Build Repeat Accommodation Semi Worth US$315 Million for Floatel

Keppel FELS Limited (Keppel FELS) has entered into a Letter of Intent (LOI) with returning customer, Floatel International Ltd (Floatel), to build a new generation harsh environment accommodation semisubmersible (semi) worth US$315 million for delivery in July 2014. A further announcement will be made when the contract is signed.

This will be Floatel's fourth accommodation semi with Keppel FELS after the delivery of Floatel Superior and Floatel Reliance in 2010 and the order of Floatel Victory in 2011.

The new semi will be based on the Floatel Superior design, a DSSTM 20NS design developed by GustoMSC and Keppel FELS' Deepwater Technology Group. Equipped with Dynamic Positioning (DP) 3 capability, it will meet the most stringent rules and regulations for worldwide operations including the Norwegian Sector.

Mr. Peter Jacobsson, CEO of Floatel, announced, "We continue to build our fleet of highly capable accommodation vessels such as Floatel Superior to meet global demand for safe and cost efficient service. Floatel International has an excellent organisation which positions us favourably for strengthening our niche offering in this market segment. The DSSTM 20NS has been a proven design for us, with Floatel Superior achieving excellent performances wherever she has operated; First for ConocoPhillips Australia in the Timor Sea and presently for Statoil in Norway's Oseberg field.

"In growing our fleet of next generation accommodation semis to meet the needs of the market, Keppel FELS has been a good partner for us in terms of reliability and quality, with an established track record of delivering on time and on budget."

When completed, the new semi will be able to accommodate 440 persons in single bed cabins with ample recreation areas as well as office amenities. Well equipped with a host of modern facilities, the vessel is ideal for construction support during new construction, maintenance activities or for decommissioning projects of offshore oil and gas installations.

Mr Wong Kok Seng, Managing Director of Keppel FELS said, "Keppel-built and designed accommodation semis have proven their worth wherever they have been deployed. We are proud to note that all our semis for Floatel have been chartered with good performances and are pleased to support them as they grow their fleet to become a leading operator in their niche. We look forward to provide yet another highly capable accommodation semi to Floatel safely, on time and within budget."

Floating accommodation platforms are needed to provide additional living quarters for drilling and production personnel. Such support is required during hook-up and commissioning in the development phase, for maintenance and upgrading during the production phase, as well as for decommissioning.

The two Floatel rigs delivered in 2010, Floatel Reliance and Floatel Superior, have been chartered to Petrobras in Brazil's Campos Basin and to Statoil in Norway's Oseberg field respectively. Floatel Victory which is scheduled for delivery by Keppel FELS in 1Q 2014 has secured a charter with BP Exploration Operating Company for the Clair Ridge Development project on the UK Continental Shelf.

The aforementioned transaction is not expected to have any material impact on the net tangible assets or the earnings per share of Keppel Corporation Limited for the current financial year.