Keppel FELS pops the champagne on US$265m jack up rig deal

It'll be delivered in 2Q16.

According to a release, Keppel FELS Limited (Keppel FELS), a wholly owned subsidiary of Keppel Offshore & Marine (Keppel O&M), has secured a contract to build a repeat KFELS Super A Class harsh environment jackup rig from a subsidiary of Ensco plc (NYSE: ESV) for around US$265 million.

Scheduled for delivery in 2Q 2016, it will be the fourth ENSCO 120 Series jackup rig that Ensco has ordered from Keppel FELS since 2011. As part of the contract, Ensco has an option to order another similar rig.

Mr Tong Chong Heong, Chief Executive Officer of Keppel O&M, said, “We are pleased that Ensco, which has the largest fleet of premium jackup rigs in the world, continues to expand its fleet of harsh environment jackup rigs with Keppel FELS. It marks the strength of our reputation for providing proven rigs that are the best in class.

“Customers come to us because we have the experience and expertise to come up with solutions that can meet their needs. We are able to stay ahead of the competition because we have the R&D resource and execution capabilities to deliver customised and differentiated rig designs that are high performance, cost efficient and reliable. We are encouraged that established drilling contractors such as Ensco continue to value rigs of quality and the Keppel promise of on-schedule project execution.”

The ENSCO 120 Series rigs are based on the KFELS Super A Class, which is an enhancement of the proven KFELS MOD V-A Class jackup and features its proprietary and superior jacking and fixation system that has a perfect track record operating in a variety of environments. To date, over 2,800 jacks designed by Keppel FELS’ Offshore Technology Development unit have been installed in the jackup rigs built to KFELS’ proprietary designs.

Keppel FELS delivered the first ENSCO 120 Series jackup, ENSCO 120, earlier this year, which has been chartered to Nexen and is about to begin work in the North Sea. ENSCO 121 and ENSCO 122 are also contracted for multi-year terms in the North Sea following delivery from Keppel FELS.