Keppel bags US$227m jackup order from Qatar firm

KEPPEL FELS Limited (Keppel FELS) has secured a fifth jackup contract from Qatar's Gulf Drilling International (GDI) for US$227 million.

The new jackup is scheduled for delivery in Q1 2016, and will be chartered to Qatar Petroleum for five years.

As part of the contract, GDI - which is owned by the largest oilfield service company in Qatar, Gulf International Services - has options for two more KFELS B Class rigs for deliveries in 2017.

Keppel FELS is a wholly-owned subsidiary of Keppel Offshore & Marine (Keppel O&M). The contract is not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation for the current financial year.

Said Wong Kok Seng, managing director of Keppel O&M (Offshore) and Keppel FELS: "The KFELS B Class has established itself as a reliable high specification jackup rig for the Middle East with more than 10 such rigs successfully operating there."

The new jackup is GDI's fifth KFELS B Class jackup rig ordered from Keppel. The fourth rig was delivered last month.

In addition to the jackup rigs Keppel has built for GDI, Keppel's joint venture shipyard with Qatar Gas Transport Company is currently constructing a self-propelled and self-elevating liftboat customised for GDI.

Keppel Corp shares closed on Tuesday at S$10.46, down 14 cents, amid a broad market retreat.