Keppel secures $240m jackup order from Perforadora Central

For delivery by 4Q15.

Keppel AmFELS, a US-based wholly-owned subsidiary of KEP, has secured a contract from Perforadora Central to build a KFELS B Class jackup rig for USD240m.

With Keppel Corp’s latest jackup order win from Mexico-based Perforadora Central, its YTD orders has been raised to SGD5.1bn, making up 86% of our new orders forecast for FY13, notes OSK-DMG. Keppel Corp's net order book is estimated at SGD15.2bn.

"We think the news is a positive given the stronger price point and the repeat order for an own-design," said OSK-DMG.

The rig, scheduled to be delivered in 4Q15, will be able to operate in depths of up to 400 ft and drill up to 30,000 ft. Since 2010, KEP has secured 13 KFELS B Class jackup rig orders for the Mexican market from various customers. This excludes the potential six-rig jackup order from Petroleos Mexicanos (Pemex). This is the fifth jackup rig ordered by Perforadora Central from KEP.

OSK-DMG further noted that Keppel Corp's strong order book visibility is a positive and that more should come in 4Q13.

"We expect it to achieve SGD6bn in new orders in FY13. It has started marketing its drillship design to rig owners, and we believe there is a possibility that the group may win its first drillship order by end-2013," said the research firm.

"Additionally, the jackup cycle remains robust, with key players like Transocean (RIG US, NR) looking to build up to ten jackup rigs. As such, we expect KEP to win more jackup orders in the future," it added.