Keppel FELS Contracted to Build Two Semi-submersible Rigs

Keppel FELS signs contract to construct the rigs for Ukraine's National Joint-Stock Company "Naftogaz of Ukraine" (Naftogaz).

The contract is worth about US$ 1.2-billion, but is dependent upon final corporate approvals.

The rigs will be built to Keppel FELS' proprietary DSSTM 38U design which is customised for the Black Sea environment. The harsh weather conditions of the Black Sea include extreme freezing temperatures, storms with strong winds and heavy seas.

Durable grades of steel with increased thickness will form the basis of the structural design of the hull and pontoons of the rigs. They will have winterisation features such as machinery cladding, advanced heating systems to prevent equipment and pipe freezing as well as enhanced air conditioning for the living quarters.

Mr Wong Kok Seng, Managing Director (Offshore) of Keppel O&M and Managing Director of Keppel FELS said, "We are pleased to be chosen by Naftogaz to work on these two complex projects for the Black Sea. Having delivered two jackup rigs for the Black Sea, we understand the specifications necessary for rigs to work in such extreme conditions.

Mr Evgen Bakulin, Chairman of Naftogaz, added, "The addition of these rigs to our fleet is part of our extensive programme to modernise our offshore exploration and production facilities. This will allow us to reach a new level of shelf development in the Black and Azov Seas, rapidly boost our oil and gas production and reduce our imports of natural gas.

According to Ukraine's official estimates in 2011, the country boasts proven reserves of natural gas (1200 billion cubic meters) and oil and gas condensate (220 million tons).