Keppel secures US$260 million contract with Floatel

The deal is for a new generation accommodation semisubmersible for delivery in 1Q 2014.

This new rig developed by Keppel O&M's Deepwater Technology Group, will be built to the SSAU4000NG design with Dynamic Positioning 3 capability. It marks Keppel FELS' third accommodation semi project with Floatel, after the delivery of Floatel Reliance and Floatel Superior last year.

The SSAU4000NG is an enhancement of the proven SSAUTM 3600 design, with improved capability and operability. It meets the stringent UK HSE requirements to work in the UK sector of the North Sea as well as the Gulf of Mexico, Brazil and Western Australia.

Equipped with state of the art accommodation and recreational facilities, the SSAU4000NG provides increased comfort for the 500 persons it can accommodate in one-man and two-man cabins.

Mr Peter Jacobssen, Chief Executive Officer of Floatel International Ltd said, "What Keppel FELS has built for us previously have been well received by the market. Both units are working successfully in their respective fields.”

“We have ordered this third unit as we continue to see strong demand for such highly capable accommodation vessels, and we believe we are well positioned to strengthen our niche offering in this area,” he added.

Featuring the latest technology such as DP3 and enhanced Station-Keeping, the SSAU4000NG is capable of operating alongside fixed platforms, floating platforms and Floating Production Storage and Offloading Vessels, with a full complement of deck cranes and fire fighting capabilities.

Floating accommodation platforms are needed to provide additional living quarters for drilling and production personnel. Such support is required during hook-up and commissioning in the development phase, for maintenance and upgrading during the production phase, as well as for decommissioning.

The latest newbuild contract is not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year.