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Outlook for offshore rig market positive: Keppel
Keppel FELS Ltd (Keppel FELS), the wholly owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has secured a US$128.8 million contract for the construction of a KFELS B Class jackup rig for Seatankers Management Co Ltd (Seatankers).
Michael Chia, Executive Director, Keppel FELS, said, “Outlook for offshore rig market looks very positive with utilisation rates rising faster than anticipated in the last one year. As the industry expects the market to tighten further, there is growing interest in rigbuilding, particularly in the drilling jackup market.
“We are happy to benefit from this trend, and our response to the current market environment is to stay on course in providing quality products and services to all our customers on time and on budget.
“We will keep focusing on excellent and innovative project execution for every individual order.”
The jackup, built to Keppel FELS’ proprietary design, incorporates the latest design and engineering concepts. It is capable of drilling down to 30,000 feet in water depths of up to 400 feet.
The growing offshore market has seen a growing demand for the KFELS
B Class jackup rigs, which is well received by the market.
Since its introduction in year 2000, five KFELS B Class jackups have been gainfully deployed.
The new rig for Seatankers, when delivered in third quarter 2007, will add to Keppel’s track record of 16 KFELS B Class rigs in total in the market.
The contract secured is not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation for the financial year 2005
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