KEPPEL Corporation's latest foray into Mexico could add US$1.32 billion to its orderbook, analysts say.

Its unit Keppel Offshore & Marine (O&M) on Friday signed an Memorandum of Understanding with two subsidiaries of Mexico's national oil company Pemex to set up a new yard in Mexico.

Under the US$150 million first phase of the agreement, Keppel O&M will support the building of six KFELS B-class jackup drilling rigs for PEP, a Pemex subsidiary.