Keppel receives repeat Maersk order

Singapore-based Keppel FELS Ltd (Keppel FELS) has secured a contract to build a repeat ultra deepwater semi-submersible drilling platform for A.P. M?ller – M?rsk at a cost of $263 million. This order brings the level of new contracts secured to date in 2006 to above $2.5 billion for the whole of Keppel Offshore & Marine (Keppel O&M) group.

This contract follows the exercise of an option given to Maersk Contractors when it ordered two semis in May 2005 and will be the fourth semi that Keppel FELS is constructing for Maersk Contractors. Keppel delivered the first semi, Maersk Explorer to Maersk Contractors in 2003.

Deepwater oil and gas production activities have been increasing and expenditures are predicted to reach $20 billion per year by 2010. Keppel recognised this trend towards deepwater exploration and production and has positioned itself to offer an entire package of deepwater technology solutions.

Under the agreement, Maersk will supply the drilling and other equipment. Similar to the first two rigs, this new semi will be built to the proprietary design, the DSS-21,

co-developed by Keppel?s Deepwater Technology Group (DTG). The semi will be equipped with a dynamic positioning system, which can be attached to a prelaid mooring system. It is suited for operations in moderate environmental conditions such as West Africa, Brazil, Gulf of Mexico and Southeast Asia in water depths of 3,000 metres or 10,000 feet. Each rig can accommodate up to 180 persons.

Delivery of this newbuilding is expected during first quarter of 2010 while the two semis already under construction are scheduled for delivery in first quarter 2008 and 2009 respectively.