New player orders jack-up trio at Keppel FELS

FEBRUARY 13, 2014 — Singapore's Keppel FELS shipyard a wholly owned subsidiary of Keppel Offshore & Marine (Keppel O&M), has secured contracts to build three high-specification KFELS B Class jack-up rigs worth about US$650 million from new customer Fecon International Corp. (Fecon).

Backed by industrial entrepreneur, A.P. Dobrov, Fecon is a new player to the offshore oil and gas industry, and is targeting the growing offshore drilling markets of Africa, Middle East, and Southeast Asia. Fecon's leadership team has extensive connections, experience and knowledge of working in Russia and has also identified offshore drilling in Russia as a strategic market with good growth opportunities.

The three rigs are scheduled to be delivered progressively within 2H 2016.

"There is a need for more high specification jack-up rigs as the replacement cycle continues and we believe the robust KFELS B Class rig will be the most efficient rig in the greatest number of locations," says Mr. Dobrov. "Building three premium rigs at the same time will enable us to accelerate our presence in this industry and establish ourselves as a serious drilling contractor in the market. Being a new player, teaming up with the world's leading rig builder, Keppel FELS, will help fast track our entry into the market. Their track record of delivering on time, without incidents and on budget will ensure we get maximum value and returns on our investment."

The KFELS B Class rig is able to operate in water depths of up to 400 feet and drill to 30,000 feet deep. Customized to Fecon's requirements, the three jack-up rigs will each have a full 15,000 psi BOP system, 75-feet cantilever outreach and be able to accommodate 150 persons.

Mr. Wong Kok Seng, Managing Director (Offshore) of Keppel O&M and Managing Director of Keppel FELS said, "We are pleased that new customer Fecon has chosen to build three KFELS B Class rigs as the basis for their fleet of jack-ups. Our KFELS B Class rigs are the industry benchmark for jack-up rigs with more than 50 delivered and operating successfully in various parts of the world including Southeast Asia, the Middle East, Gulf of Mexico and the Black Sea. I am confident these rigs for Fecon will be just as successful wherever they are deployed.

"Their efficiency, reliability, ease of operation as well as safety and environmental features make them the default rig of choice for both experienced and new operators. With these new orders, Keppel O&M currently has 27 KFELS B Class rigs on order."

Developed by Keppel's technology arms, Offshore Technology Development and Bennett Offshore, the KFELS B Class is customized to operate in a wide variety of environments and features an enhanced leg design for added robustness. The design incorporates Keppel's fully-automated high capacity rack and pinion jacking system, and self-positioning fixation system.