Keppel Offshore & Marine’s new orders for the year-to-date reaches S$7.4 billion
Keppel FELS Limited’s (“Keppel FELS”) repeat customer, Asia Offshore Drilling Limited (“AOD”) has exercised its first of two options to build a KFELS B Class jackup rig worth US$184 million. The effectiveness of this first option is subject to AOD or its wholly owned subsidiary entering into a construction contract with Keppel FELS and fulfilling certain conditions precedent.
This rig will be AOD’s third with Keppel FELS and is scheduled for delivery in 3Q2013. AOD, established by Singapore listed Mermaid Maritime Public Company Limited (“Mermaid”), had placed orders for two KFELS B Class jackup rigs in December 2010. Last week, AOD announced the completion of a private placement which will result in Mermaid and Seadrill Ltd. each having a 33.75% equal shareholding ownership in AOD.
M.L. Chandchutha Chandratat, Chairman of the Board of AOD, said, “We continue to see bifurcation in the jackup market. Oil companies are showing a preference for high specification jackups for which the KFELS B Class stands out as a choice design. We are therefore strengthening our position as an Asian drilling company with our third KFELS B Class rig order.
We are also pleased that our strategic decisions were recognised by Seadrill, which is one of the most successful drilling companies in the world. This partnership between Mermaid, Seadrill and Keppel FELS provides AOD with a strong platform to develop its business to serve the Asia Pacific and Middle East markets.”
With the exercise of the option, Keppel Offshore & Marine’s new orders for the year-to-date has reached S$7.4billion.
Mr Tong Chong Heong, CEO of Keppel Offshore & Marine said, “We are pleased to receive yet another order for our KFELS B Class rig and further reinforce our partnership with AOD. We have delivered 33 jackup rigs based on the KFELS B Class design, with another 19 on order. This is testament to the proven capabilities of this high specification and cost-effective design.
Keppel stands ready to support AOD as they develop their fleet of premium rigs based on the KFELS B Class design. The two rigs previously ordered by AOD are progressing well on track, and we look forward to deliver these safely, on time and within budget.”
When completed, AOD’s rigs will be able to operate in water depths of 350 feet, drilling depth of 30,000 feet and accommodate 150 men.
Developed by Keppel’s technology arm, Offshore Technology Development, the KFELS B Class jackup is designed to provide maximum uptime with reduced emissions and discharges. It incorporates Keppel’s advanced and fully-automated high capacity rack and pinion elevating system, and Self-Positioning Fixation System.
The exercise of the option is not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.
About Asia Offshore Drilling Limited
AOD was established on 29 October 2010 as a public company with limited liability in Bermuda by Mermaid Maritime to achieve first mover advantage by entering the jack-up rig business at the start of the now apparent jack-up rig new building cycle. The purpose of its incorporation was to act as an investment vehicle for the acquisition and operation of new build high-specification jack-up rigs under construction by Keppel FELS.
AOD has 2 KFELS B Class jackâ€up rigs currently under construction at Keppel FELS’s yard in Singapore. These two jackâ€up rigs are scheduled for delivery in 4Q2012 and 2Q2013 respectively. AOD has been given options to build another two (2) similar high specification jackâ€up rigs at Keppel FELS, one of which it has now exercised.
AOD’s reputation will been built on a culture that emphasizes safety above all else with a vision of incident-free operations on all its rigs. AOD’s offshore personnel will work closely with its clients on safety and environmental matters and strive to deliver reliable and efficient drilling operations on every well. AOD aims to be the performance leader and the most client-focused company in the offshore drilling industry within the markets it serves.
For more information on AOD please visit www.aodrilling.com
About Keppel FELS
Keppel FELS is a subsidiary of Keppel Offshore & Marine Ltd. (Keppel O&M), a wholly-owned company of Keppel Corporation Limited. Keppel O&M is a leader in offshore rig design, repair and construction, ship repair and conversion and specialised shipbuilding. Its near market, near customer strategy is bolstered by a global network of 20 yards and offices in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be the provider of choice and partner for solutions for the offshore and marine industry.
For more information on Keppel FELS please visit www.keppelfels.com