Keppel FELS Limited (Keppel FELS), the wholly-owned subsidiary of Keppel Offshore & Marine Limited (Keppel O&M), has secured a US$420 million contract to build two jackup drilling rigs for Seadrill Limited (Seadrill).

To be delivered in the second and fourth quarter of 2010, the new rigs will be built to Keppel’s proprietary KFELS B Class design.

Mr Alf C Thorkildsen, CEO of Seadrill said, “We had an excellent experience working with Keppel FELS and are impressed with the performance of the four KFELS B Class jackup rigs, which are presently operating at full capacity. We are pleased to partner Keppel FELS again for the construction of our latest newbuild KFELS B Class jackups.”

Since the design’s launch in 2000, Keppel FELS has secured 33 orders for such units including the two latest Seadrill jackups.

Cost effective and readily upgradeable to higher performance capabilities, the KFELS B Class incorporates Keppel’s advanced and fully-automated high capacity rack and pinion elevating system, and Self-Positioning Fixation System. When completed, these rigs will be able to operate in water depths of up to 400 feet, drill down to 30,000 feet and accommodate 112 men.

Mr Choo Chiau Beng, Chairman and CEO of Keppel O&M, said, “We thank Seadrill for their continued confidence in us and will support them in meeting their drilling requirements by remaining committed to deliver quality projects on time and within budget.”

In addition to these new jackup orders, Keppel FELS is currently constructing a semisubmersible drilling tender (SSDT) for Seadrill. The drilling tender is built to Keppel FELS’s proprietary design, the KFELS SSDT™ 3600E and is slated for delivery at the end of 2009. This is the sixth tender drilling rig Keppel O&M is building for Seadrill since 1994.

Listed on the Oslo Stock Exchange, Seadrill is an international offshore drilling contractor providing services within drilling and well services.

Keppel O&M, a wholly-owned subsidiary of Keppel Corporation Limited, is a global leader in offshore rigs, shiprepair and conversion, and as well as specialised shipbuilding. Keppel O&M's near market, near customer strategy is bolstered by a global network of 20 yards 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 a provider of choice and a partner in solutions for the offshore and marine industry.

The contract is not expected to have any material impact on the net tangible assets or the earnings per share of Keppel Corporation Limited for the current financial year.