Keppel FELS enters into Letter of Intent with Mermaid for two newbuild jackup rigsworth US$360 million - 22 OCT 2010

Keppel FELS enters into Letter of Intent with Mermaid for two newbuild jackup rigs worth US$360 million. See press release. 

Key Points

• Keppel Corporation Limited wishes to announce that its wholly-owned subsidiary, Keppel FELS Limited (“Keppel FELS”), has entered into a Letter of Intent with Mermaid Maritime Public Company Limited (“Mermaid”) to build two KFELS B Class jackup rigs worth US$360 million. In addition to these, Mermaid will have options to build another two similar jackup units.
• In the event that the proposed deal proceeds, the first two jackup rigs will be scheduled for delivery on 1 December 2012 and 1 March 2013 respectively. 
• If exercised, the options for the additional two rigs are expected to bring the total contract value to above US$700 million.
• Further announcement will be made in due course if and when the rig construction and option contracts are executed.