Keppel FELS books jack-up order

Norwegian billionaire investor Øystein Stray Spetalen has joined the parade of those seeing opportunities ahead for newbuild jack-up rigs. Standard Drilling, a subsidiary of Mr. Spetalen’s Ferncliff TIH AS investment company, has placed an order worth $180 million with Singapore’s Keppel FELS Limited for a KFELS B Class jackup rig. The order includes options for two similar rigs that, if exercised, would bring the total contract value to about $550 million.

The first rig is slated for delivery in the second half of 2012. When completed, the rig will be able to operate in water depths of 400 feet, with a drilling depth of 30,000 feet and accommodations for 120 personnel.

Mr. Martin Nes, CEO of Ferncliff TIH AS, said, “We are seeing activities and opportunities in the jackup market recovering quickly and are positive that this demand for newer, safer, high-specification jackups will be sustained, given the growing need worldwide for premium units with capabilities to operate safely in more challenging locations.”

“To create stable and long-term value for our stakeholders, we believe in working with partners with specialist expertise, good management and world leading technology, to develop our assets that will give a good foundation for future growth.

“Rigs built to the KFELS B Class design are known to be highly efficient drilling platforms with industry-leading features for safety and environmental friendliness and boast a proven track record. We are pleased to work with Keppel FELS on building a premium jackup drilling rig of this design, which we are confident, will become a first class asset to our portfolio.”

Developed by Keppel’s technology arm, Offshore Technology Development, the KFELS B Class is designed to provide maximum uptime with reduced emissions and discharges.Readily upgradeable to higher performance capabilities, KFELS B Class rigs incorporate Keppel’s advanced and fully-automated high capacity rack and pinion elevating system, and Self-Positioning Fixation System.

November 26, 2010