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Keppel and Floatel Sign Contract for Fourth Accommodation Semi at US$315 Million

By MarEx 2012-11-20 12:45:00

Keppel FELS Limited (Keppel FELS) and Floatel International Ltd (Floatel) have finalized a contract for Keppel FELS to build a new generation harsh environment accommodation semisubmersible (semi) worth US$315 million. This follows the Letter of Intent announced by Keppel and Floatel earlier in March this year.

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, which is scheduled for delivery in 4Q 2013.

With delivery in early 2015, the new semi will be built to the Floatel Superior design, a DSS 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.

Well equipped with a host of modern facilities, the semi will have a large payload and deck area in combination with dual cranes, making it ideal for construction support during new construction, maintenance activities or for decommissioning projects of offshore oil and gas installations. It will be able to accommodate 440 persons in single bed cabins with ample recreation areas as well as office amenities.

Floating accommodation platforms are needed to provide additional living quarters for support personnel in exploration and production activities. Such support personnel are 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 Superior and Floatel Reliance, have been chartered to Statoil in the Norwegian sector of the North Sea and to Petrobras in Brazil's Campos Basin respectively. Floatel Victory which is scheduled for delivery by Keppel FELS in 4Q 2013 has secured a charter with Chevron USA for its Jack St Malo field and with BP Exploration Operating Company for the Clair Ridge Development project on the UK Continental Shelf.

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