Rig: Valaris 106

Keppel FELS divests its entire interest in rig to ENSCO for US$80 million

Keppel FELS Limited (Keppel FELS) has transferred its entire 75% interest in ENSCO Enterprises Ltd II (JVC) to ENSCO Offshore International Company (ENSCO) for a cash consideration of US$80 million. The JVC is part of an alliance agreement with ENSCO to build, own and operate a jackup rig, ENSCO 106, valued at around US$105 million. The agreement carries an option for ENSCO to purchase Keppel FELS' entire interest in the rig prior to or upon delivery. The consideration is based on the book value of Keppel FELS’ 75% interest in the JVC. Said Mr Choo Chiau Beng, Chairman & CEO of Keppel Offshore & Marine (Keppel O&M), “Keppel and ENSCO share a win-win relationship that has worked well for both parties. “We are glad that ENSCO has chosen Keppel as its partner of choice to expand their fleet of premium rigs to meet the growing demands in the offshore oil and gas market.” ENSCO 106 is the fifth KFELS B Class jackup to be built and delivered by Keppel FELS. The rig will be deployed to Apache Energy Limited for the North West Shelf field in Australia.

Keppel FELS to deliver KFELS B class jackup ahead of schedule

Keppel FELS Ltd (Keppel FELS), a wholly owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), today christens its KFELS B Class design jackup drilling rig, designed and built for ENSCO International Inc (ENSCO). Completed within budget, the jackup rig will be delivered to ENSCO ahead of schedule in end January 2005. The rig, ENSCO 106, is the first KFELS B Class jackup customised to meet ENSCO’s needs for a larger footprint in the three legs of the jackup. The footprints, which are called the spud cans, are of larger diameters. This gives ENSCO 106 the flexibility to operate in waters where the sea-bed soil conditions are extremely soft. The rig is also equipped with the Rack Phase Differential and Pinion Load monitoring systems. Developed by Keppel Offshore & Marine’s research and development arm, Offshore Technology Development (OTD), these systems assist rig personnel in safe deployment at the drilling location. ENSCO 106 is the fifth KFELS B Class jackup to be completed by Keppel FELS. It is also the fifth jackup that Keppel O&M has built for ENSCO since 1998. ENSCO 106 will be deployed to Apache Energy Limited for the North West Shelf field in Australia.