Keppel pocketed US$2m bonus from early project completion

Still unfazed by Chinese rivals.

According to Phillip Securities Research, Keppel FELS announced yesterday that it won a contract worth US$226mn (S$280mn) from Falcon Energy Group to build a KFELS Super B Class jack-up. This follows closely after Keppel’s US$225mn jack-up rig order from Ensco last week.

Keppel has already delivered 6 rigs ahead of schedule, safely and on budget. For the latest delivery of a KFELS B Class jack-up, to Asia Offshore Drilling, they have received a bonus of about US$2mn for completing the rig 62 days early.

Here's more:

The current order of US$226mn is 8% higher than the last Super B Class jack-up ordered at Keppel FELS by Japan Drilling valued at US$210mn in March 2011. This shows that the prices for new premium jack-up rigs are unaffected by strong competition coming from the Chinese yards.

Keppel’s strong track record of delivering rigs ahead of schedule still remains the go-to yards for premium jack-up rigs.

Falcon Energy, a new customer to Keppel FELS, is a leading player in the regional Offshore Marine and Oil & Gas sectors. It entered the offshore oil drilling business when they ordered 2 jack-up rigs from China in 2011.