Keppel Secures Repeat Jackup Order from Ensco Worth About US$225 Million

It is the 61st KFELS B Class Jackup ordered since 2000

By MarEx 2013-04-09 10:40:00

Keppel FELS Limited (Keppel FELS), a wholly-owned subsidiary of Keppel Offshore & Marine (Keppel O&M) has secured a contract to construct a KFELS B Class jackup rig, ENSCO 110, from Ensco plc (NYSE: ESV). The construction cost, together with the commissioning, systems integration testing and project management is expected to be approximately US$225 million.

When completed in 1Q 2015, it will be the fourth KFELS B Class Bigfoot jackup rig in Ensco's fleet. Keppel has built a long-term partnership with Ensco having delivered 16 newbuild projects to them with another four on order, including this latest contract.

Mr Tong Chong Heong, CEO of Keppel O&M said, "We are glad to have long-standing customer Ensco reaffirm their confidence in our capabilities and rig design. The KFELS B Class is a proven design which is today the industry benchmark. We are honoured that Ensco, one of the world's leading offshore rig operators, has been a tremendous supporter of our proprietary designs and look forward to supporting them in the growth of their premium rig fleet."

The cost-effective and high-performance KFELS B Class Bigfoot rig is able to operate in water depths of up to 400 feet and drill to 30,000 feet deep. ENSCO 110 will have a nominal variable deck load of 7,500 kips and a cantilever load of 2,500 kips. It will also feature a 1.5 million-pound derrick, TDS-8 top drive and 15k BOP. Ensco has customised the rig to add dual drilling fluid capability and to upgrade the living quarters to 6 one-person and 67 two-person rooms.

Mr Dan Rabun, Chairman and CEO of Ensco plc, said, "We see that customer demand in the premium jackup market is very strong and new construction is a key element of Ensco's continuous high-grading strategy. Our three KFELS B Class Bigfoot rigs have proven to be highly efficient drilling platforms with industry-leading features for safety and environmental friendliness. We have built a strong relationship with Keppel FELS and the three ENSCO 120 Series rigs they are currently building for us based on the KFELS Super A Class design are testament to this."

Developed by Keppel's technology arm, Offshore Technology Development, the KFELS B Class jackup design provides maximum uptime with reduced emissions and discharges.

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.

The products and services herein described in this press release are not endorsed by The Maritime Executive.