Keppel FELS Limited (Keppel FELS), a wholly-owned subsidiary of Keppel Offshore & Marine (Keppel O&M) has secured a contract from an affiliate of Clearwater Capital Partners (Clearwater) to build a pair of premium KFELS B Class jackup rigs. The total cost of the project is about US$440 million, which also includes owner furnished equipment and project management fees.

The rigs are scheduled to be completed in 4Q 2015 and 1Q 2016.

Mr Wong Kok Seng, Managing Director (Offshore) of Keppel O&M and Managing Director of Keppel FELS said, "We are glad to have repeat customer Clearwater reaffirm their confidence in our capabilities and rig design. With 49 KFELS B Class/Super B Class jackup rigs already delivered and 17 on order, it is a clear indication of the strength of the design with oil companies and drilling operators. We look forward to providing Clearwater with premium, safe and cost-efficient rigs that are in demand in the market.

"Having delivered 16 rigs already this year, Keppel FELS has demonstrated its strong project execution capabilities in completing all its projects safely, ahead or on time and within budget. In addition, with the rigs being built to repeat designs, we are able to reap efficiencies by replicating the process to speed up the work."

The KFELS B Class jackup rig is able to operate in water depths of up to 400 feet, drill to 30,000 feet deep and equipped with offline standbuilding capability. Developed by Keppel's technology arm, Offshore Technology Development, the KFELS B Class jackup design provides maximum uptime with reduced emissions and discharges.

Dr Yao Chye Chiang, Singapore-based Chief Operating Officer of Clearwater said, "We continue to see strong demand for new high specification jackup rigs as the industry continues its rig replacement trend. Even with the number of new jackups entering the market this year, more than half the existing rigs will be older than 30 years by 2015.

"The KFELS B Class is a proven design which has been the rig of choice for leading oil companies in the industry. This is an opportune time for us to scale up with two rigs of this design and we are confident in getting a good return on our investment. As the world's leading rig builder with a strong track record for delivering high quality rigs on time and on budget, Keppel FELS is the ideal shipyard partner for us."

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.

About Clearwater
Clearwater Capital Partners, LLC (Clearwater) is an investment firm founded in December 2001 and dedicated to investing in credit and special situations across Asia, excluding Japan. Since inception Clearwater has invested over $3.5 billion in the Asia region and currently manages approximately $2 billion in assets across its six investment vehicles. Clearwater's multi-disciplinary team is based in six primary offices across Asia including a Singapore office with a 19 person team.

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 FELS is a leading designer, builder and repairer of high-performance mobile offshore rigs. Its portfolio of proprietary designs and floating production solutions meets a broad spectrum of operating requirements, including deep waters and harsh environments.

As a group, Keppel O&M is also a leader in 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.