Keppel firms up $4.1 billion order for Petrobras semis

keppel DSS 38AUGUST 7, 2012 — Keppel Offshore & Marine Ltd (Keppel O&M) has firmed up contracts worth $4.1 billion with Sete Brasil Participações S.A. (Sete Brasil) that will see it build five additional semisubmersible offshore drilling rigs at its BrasFELS shipyard in Angra dos Reis, Brazil.

The five semis will have a local content ranging from 55 percent to 65 percent and will be based on Keppel's proprietary  DSS 38E design, which has improved capability and operability, making it well suited to meet the stringent requirements of the deepwater "Golden Triangle" region of Brazil, Africa and the Gulf of Mexico. The semis are scheduled for delivery from the fourth quarter of 2016 through the third quarter of 2019.

In December 2011, Keppel O&M secured a contract from Sete Brasil to build one semi to the same DSS 38E design for delivery from BrasFELS in fourth quarter 2015.

With these latest firm contracts, Keppel will be building a total of six  DSS 38E semis for Sete Brasil. When completed, the rigs will be chartered to Petrobras for 15 years for drilling activities in the pre-salt areas of Southeast Coast of Brazil, offshore Brazil.They will be capable of operating at a water depth of 3,000 meters, drilling wells up to 10,000 meters in length.

Three rigs will be operated by Queiroz Galvão Óleo e Gás SA, two by Petroserv SA and one by Odebrecht Óleo e Gás SA.

The six BrasFELS drilling rigs are part of a 21-rig package announced by Petrobras in February this year., as announced on February 9, 2012, and delivery is scheduled to commence in 2016. The rigs will be used to drill wells in the Santos Basin Pre-Salt cluster.

Sete Brasil's Chief Executive Officer, Mr. Joao Carlos Ferraz, said, "We are pleased to ink the firm contracts with Keppel to design and build five additional semis for us at their established yard in Brazil. We and the drilling contractors are ready to work closely with Keppel on all six rigs, and I'm confident Keppel will deliver the quality rigs to us safely and on time."

Mr. Tong Chong Heong, Chief Executive Officer, Keppel O&M, commented, "We are privileged to be given this significant opportunity to continue to play a key role in the development of Brazil's oil and gas industry. The preparation work on the semis is well underway, and we are ready to embark on their construction at our BrasFELS yard in Brazil.

"Looking ahead, our priority continues to be on the training and education of our current and additional workforce for these projects in Brazil as part of our productivity enhancement strategy," added Mr. Tong.

The  DSS 38E design is rated to drill to depths of 10,000 m below the rotary table in 3,000 m water depth. Its operational displacement is approximately 45,000 tonnes. Each rig will have accommodation facilities to house a crew of up to 160 men. The vessel is designed to stay in position via eight azimuthing thrusters and the configurations comply with the ABS DPS-3 requirements. This design is jointly developed and owned by Keppel's Deepwater Technology Group and Marine Structure Consultants.

Petrobras undertook a prior critical analysis at the yard to confirm its potential capability to meet the contractual commitments to build the six platforms with the required local content and within the required timeframe. Facility suitability, evidence of commitments with suppliers of inputs and of key equipment packages for the rigs, environmental licensing, HSE management (Health, Safety and Environment), contract management, as well as the legal and financial aspects, were all subjected to verification.

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