Keppel Corp delivers first high-spec jackup rig to CP Latina

Second scheduled for delivery by 4Q 2013.

Keppel FELS has delivered a KFELS B Class jackup rig, to Constructora y Perforadora LATINA (CP LATINA), a private Mexican company in the energy sector.

The rig was named LA SANTA MARIA at a ceremony in Keppel FELS today. Delivered on time and with a perfect safety record, it will be chartered to PEMEX, Mexico's national oil company, for deployment in offshore Mexico.

LA SANTA MARIA is the first of two high-specification jackup rigs that Keppel FELS is building for CP LATINA. The second rig is on schedule to be delivered in 4Q 2013.

Mr Wong Kok Seng, Managing Director (Offshore) of Keppel Offshore & Marine and Managing Director of Keppel FELS, said, "This on time and safe delivery is a demonstration of the win-win partnership we have developed with our new customer CP LATINA. We are glad that they have chosen the KFELS B Class as their first two jackup rigs. The premier rig of its class, the KFELS B Class has a proven track record in the Gulf of Mexico.

"LA SANTA MARIA is the third such rig Keppel FELS has delivered to Mexican customers since 2012. With another nine on order, we are well placed to be the leading provider of offshore drilling solutions for the Mexican market."

Keppel's proprietary KFELS B Class jackup design is able to operate in water depths of up to 400 feet and drill to depths of 30,000 feet. Developed by Keppel's technology arm, Offshore Technology Development (OTD), the robust rig is equipped with an advanced and fully-automated high capacity rack and pinion jacking system, and Self-Positioning Fixation System.

Mr Santiago del Valle Toca, Chairman of CP LATINA, added, "We chose the KFELS B Class for its excellent track record, strong capabilities and cost-efficiencies. We were also looking for a rig that could be delivered to our timeline and this early delivery has shown that Keppel FELS is the right partner for us. As we look to expand our drilling services portfolio, the acquisition of two such rigs is a strong base for us to establish a foothold in the Mexican offshore market. We are confident that the second rig Keppel is building for us will be delivered just as efficiently, enabling us to meet the demands of the market."

Mexico's proven reserves of oil and gas at the start of 2013 is almost 14 billion barrels of crude-oil equivalent. PEMEX announced plans to add between eight and 12 offshore platforms to its drilling fleet earlier this year and unveiled investment plans of US$25.3 billion for 2013, of which US$20 billion will be targeted at upstream activities.

In addition to the second rig for CP LATINA, Keppel FELS is also building for the Mexican market - two KFELS B Class jackup rigs for PEMEX, five for Grupo R and one for Parden Holding. It recently delivered two similar rigs to Mexican customer Oro Negro while sister yard, Keppel AmFELS in Brownsville, Texas, delivered a jackup rig to Perforadora Central in April 2013 with another due for delivery in 1Q 2014.