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Keppel to Build New Jackup Worth US$195m for Mexico

Source: www.gulfoilandgas.com 3/7/2011, Location: North America

Keppel AmFELS LLC, a US wholly-owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has won a contract from Mexico's Perforadora Central SA de CV (Perforadora Central) to build a repeat jackup rig valued at about US$195 million.

Slated for delivery in 1Q 2013, this latest high specification unit will be based on the LeTourneau Super 116E design. Unlike the existing LeTourneau Super 116Es, this will be the first Super 116E newbuild to be further enhanced to provide for an additional 1,500 kips of elevated load. It will have leg lengths of 511 ft and the capability to drill wells up to 30,000 ft at a water depth of 375 ft.

Mexico is the world's sixth largest producer of oil and has the seventh largest natural gas reserve in the western hemisphere. PEMEX, Mexico's national oil company, has recently announced plans to invest approximately Ps. 286.3 billion (US$23.6 billion) in 2011, more than 80% of which would be allocated to exploration and production activities.

Mr Tan Geok Seng, President of Keppel AmFELS, said, "Keppel AmFELS has enjoyed a win-win partnership with Perforadora Central that dates back to 2002. Today, we are pleased to further strengthen our years of collaboration with a contract for our third newbuild jackup rig together.

"With a strategic presence at the gateway of the Gulf of Mexico, Keppel AmFELS is in a prime position to serve this growing offshore sector and be the preferred solutions provider of drillers and operators in Mexico and the region."

In keeping with its tradition of safe, on-time and within-budget deliveries, Keppel AmFELS completed Tonala, an ultra premium KFELS B Class jackup for Perforadora Central in 2004, followed by Tuxpan, a LeTourneau S116E rig in 2010.

Perforadora Central expressed, "With each successive project, Keppel AmFELS has proven its expert project management and construction capabilities, as well as commitment to the highest standards of safety and quality.

"Our Tonala and Tuxpan jackups are turning in excellent performances for PEMEX in Mexico. We are just as confident that our latest newbuild by Keppel AmFELS will be another exceptional product to boost our track record as the foremost provider of drilling solutions in Mexico."

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