Keppel FELS Limited (Keppel FELS) has been awarded a US$142 million contract by Seadrill to build a repeat semisubmersible drilling tender (SSDT) based on the KFELS SSDTTM 3600E design.
Scheduled for delivery in 2Q2013, this is the eighth drilling tender that Keppel will be building for Seadrill since the launch of the design in 1994.
Mr Wong Kok Seng, Managing Director of Keppel FELS said, “Keppel and Seadrill have established a trendsetting partnership, which spans seven KFELS SSDTs and six KFELS B Class jackup rigs. This partnership has provided the launch pad for our industry-acclaimed KFELS SSDT, which has become the market leading solution for tender-assist operations under Seadrill’s expert management.
“The seventh drilling tender was completed in March 2011, ahead of schedule and with a perfect safety record. We at Keppel FELS are pleased to fortify our winning alliance with Seadrill, and look forward to deliver the eighth KFELS SSDT unit to our customer safely, on time and within budget.”
When completed, the latest tender rig for Seadrill will feature a crane capacity of 250 tonnes, four mud pumps and accommodation for 160 people. The Drilling Equipment Set will be supplied by Seadrill.
Alf C Thorkildsen, Chief Executive Officer of Seadrill Management AS says, “We are pleased to announce the addition of a new semi-tender to our existing fleet of 19 tender rigs. The tender rig business has delivered excellent operational results as well as outstanding economics over the last decade. Based on the continued strength of the offshore drilling market we continue to see strong growth and earnings potential for our business. The new semi-tender has a favorable construction price and an equipment specification list that will meet our customers’ future needs. We have had very good experience with the Keppel FELS yard and this design and we are confident that the new unit will be delivered on time and within budget once again. “
Designed by Keppel Offshore & Marine’s (Keppel O&M) R&D arm, the Deepwater Technology Group, the KFELS SSDTTM series can operate in deepwaters of up to 5,000 ft alongside Spars and Tension Leg Platforms.
The KFELS SSDT 3600E design was conferred the ASEAN outstanding engineering achievement award in December 2009 for its eco-friendly features and sustainable operations.
The first of Seadrill’s KFELS SSDT fleet, West Pelaut, was designed and built by Keppel FELS in 1994, and was conferred the highly coveted Shell Platform Rig of the Year award in 2004, 2006 and 2008.
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.
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Sources: Kepcorp, June 9, 2011.