Keppel FELS to Deliver Ukraine’s second KFELS B Class Jackup Rig

(Press Release) June 20, 2012

Keppel FELS Limited (Keppel FELS), a wholly owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), is on track to deliver Ukraine's second KFELS B Class jackup rig ahead of schedule, within budget and with a perfect safety record.

This follows the redelivery of their first jackup rig of the same design, in Ukraine in May this year. Built to Keppel's proprietary KFELS B Class design, this second jackup rig will be deployed on the Ukrainian shelf of the Black Sea for its owner Chernomornaftogaz. 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).

The rig was named NEZALEZHNIST (which means independence in Ukrainian), at Keppel FELS today with Mr Evgen Bakulin, Chairman of the Board of Ukraine's National Joint-Stock Company, Naftogaz, as the Guest of Honour.

Mr Bakulin said, "Ukraine is rapidly growing and we are keen to further develop the country's significant oil and gas reserves. This latest KFELS B Class jackup will add to our capabilities in E&P and increase our energy self sufficiency. We work with the world's leading rig builder and designer, Keppel FELS, because they have an established track record of delivering high quality rigs on schedule and within budget.

"We witnessed this first hand when Keppel delivered our first KFELS B Class jackup some 45 days early in Ukraine in May this year. The rig is successfully operating in the Black Sea and we are confident that this second rig will be just as successful. The KFELS B Class jackup rig is a proven design that will enable us to meet our goals."

Mr Tong Chong Heong, CEO of Keppel O&M, added, "We are pleased to be able to support Chernomornaftogaz in expanding their E&P capabilities for Ukraine. With a global network of yards, we are committed to meet the needs of our customers wherever they are.

"With this rig, there are now 34 KFELS B Class rigs in the market and there are another 19 more on order. This clearly reflects the strength of the design which is today the industry standard for modern jackup rigs. It is also currently the most versatile and advanced rig to operate in the Black Sea region. We are privileged that Chernomornaftogaz has chosen to work with us and we look forward to continuing this win-win partnership."

Developed by Keppel's jackup rig design arm, Offshore Technology Development, the KFELS B Class rig is able to operate in water depths of 400 ft with a drilling depth of 30,000 ft.

Designed for maximum uptime with reduced emissions and discharges, the KFELS B Class rig received the Prestigious Engineering Achievement Award 2009 from Institution of Engineers Singapore for its environmentally-friendly features.