Keppel Lands Yet Another Jackup Order for $240 Million

Keppel’s KFELS B Class jackup, with 34 rigs in operation and another 19 on order, are considered the ‘go to’ jackup amongst drillers

A consortium led by Keppel Kazakhstan and partner Ersai Caspian Contractor said Tuesday that they have secured a contract from a subsidiary of Kazakhstan’s state-owned oil company, KazMunayGas, for a Keppel KFELS B Class jackup rig worth US$242 million.

The rig, once completed in 2015, will help tap Kazahkstan’s vast oil reserves in the Caspian Sea that are estimated to hold some 30 billion barrels oil and 85 trillion cubic feet natural.

Today’s announcement marked both good news for Kazahkstan’s oil and gas resurgence and Keppel’s dominance in the jackup rig market.

“Together with our consortium partner, we at Keppel look forward to delivering a high quality rig to Teniz Burgylau safely, on time and within budget” said Chow Yew Yuen, CEO of Singapore-listed Keppel Offshore & Marine, which is a 50% shareholder of Keppel Kazakhstan. “With 34 rigs in operation and another 19 on order, the KFELS B Class design has been the rig of choice for drilling.”

Meanwhile Nurlan Bekzhanov, General Director of Teniz Burgylau commented: “Kazakhstan aims to steadily increase its oil and gas production to become one of the world’s top oil and gas producers and exporters. Teniz Burgylau is grateful to its shareholders KazMunayGas and KazMunayTeniz for the given opportunity to contribute towards this target by stepping up our drilling operations. For our rig, we have decided on the KFELS B Class jackup design as it is an industry benchmark for such rigs. With the established track record of Keppel O&M as the world’s leading offshore rig designer and builder, and its presence in Kazakhstan, we believe we have chosen the right partners to provide our first jackup drilling rig.”

Keppel Kazakhstan’s track record of projects include the fabrication of a series of Pipe Rack Modules, Pontoons, Hook Up Structures and the building of seven Ice Class Self Ballasting Transportation Barges for the Kashagan field development. Keppel Kazakhstan is also the first yard to launch a steel floating vessel into the Caspian Sea in Kazakhstan.