Keppel FELS to build three jackups worth US$650 million for Fecon

Keppel FELS Limited (Keppel FELS), a wholly owned subsidiary of Keppel Offshore & Marine (Keppel O&M), has secured contracts to build three high-specification KFELS B Class jackup rigs worth about US$650 million from new customer Fecon International Corp. (Fecon), Keppel’s press office said on February 13.

Backed by experienced industrial entrepreneur, A.P. Dobrov, Fecon is a new player to the offshore oil and gas industry, and is targeting the growing offshore drilling markets of Africa, Middle East, and Southeast Asia. In addition, Fecon's leadership team has extensive connections, experience and knowledge of working in Russia and has identified offshore drilling in Russia as a strategic market with good growth opportunities.

The three rigs are scheduled to be delivered progressively within 2H 2016.

Mr A.P. Dobrov, a representative of Fecon said, "The International Energy Agency estimates oil demand in the world to increase by 1.3 million barrels per day in 20141 and Barclays has forecast global E&P spending to reach a new record of US$723 billion in 2014, an increase of 6.1% from US$682 billion in 20132. There is a need for more high specification jackup rigs as the replacement cycle continues and we believe the robust KFELS B Class rig will be the most efficient rig in the greatest number of locations.

"Building three premium rigs at the same time will enable us to accelerate our presence in this industry and establish ourselves as a serious drilling contractor in the market. Being a new player, teaming up with the world's leading rig builder, Keppel FELS, will help fast track our entry into the market. Their track record of delivering on time, without incidents and on budget will ensure we get maximum value and returns on our investment."

Source: Keppel FELS Press Office, 2014