Keppel FELS adds another jack-up for Mexico to order book

KFELS-B-ClassJULY 15, 2013 — Singapore's Keppel FELS shipyard has booked another jack-up rig order from a Mexican customer. It has won a $206 million contract from Grupo R for a KFELS B Class rig that is set for fourth quarter 2015 delivery.

Grupo R is a repeat customer and the jack-up will be added to the fleet of another four similar rigs that Keppel FELS is building for it.

With this new contract, the Keppel FELS order book now includes nine KFELS B Class jack-ups for Mexican customers.

"We are delighted that Grupo R has chosen to build another jackup rig of the KFELS B Class design with us," said Mr. Wong Kok Seng, Managing Director (Offshore) of Keppel O&M and Managing Director of Keppel FELS. "It is an affirmation of their confidence in our rig designs as well as our project execution capabilities. The KFELS B Class is an industry leading jackup design with a proven track record in the Gulf of Mexico.

"With this order, there will be 65 KFELS B Class rigs in the market by 2015, of which some 13 rigs are for Mexico. We are glad to be able to support Mexico's exploration of its offshore energy reserves and look forward to providing them with on time, on budget and safe deliveries."

In its quarterly results in February 2013, Mexican national oil company PEMEX said $20 billion of its $25.3 billion investment plans for 2013 will be targeted at upstream activities.

"Mexico is aiming to boost oil production through increased E&P with PEMEX looking for a number of new high specification rigs that can optimize their operations," said Mr. Ramiro Garza Vargas, CEO of Grupo R. "The addition of this premium jackup rig to the four KFELS B Class jackups we ordered earlier will enable us to meet their requirements and strengthen our position as the leading player in Mexico's drilling industry.

"Building repeat rigs in a leading yard like Keppel FELS will ensure standardization of high quality rigs delivered safely and on time for our customers. We are also able to reap efficiencies in the construction, training, daily operations and maintenance."

Customized to Grupo R's requirements, this latest rig will be able to operate in water depths of up to 400 feet and drill to depths of 30,000 feet.

Developed by Keppel's technology arm, Offshore Technology Development, the KFELS B Class rigs incorporate Keppel's advanced and fully-automated high capacity rack and pinion jacking system, and Self-Positioning Fixation System.

It provides maximum uptime with reduced emissions and discharges. For its environmental-friendly features, the KFELS B Class design was bestowed the prestigious Engineering Achievement Award from the Institution of Engineers Singapore in 2009.

Keppel FELS recently delivered two KFELS B Class rigs, Primus and Laurus, to Mexican company, Oro Negro in December 2012 and May 2013 respectively. Two other similar rigs, the Tonala and Ocean Scepter, have also been operating successfully in Mexico.

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