"Naftogaz of Ukraine" and Keppel FELS Limited (Singapore) signed contract for delivery of two semi-submersible drilling rigs

The value of the contract is 1 billion 226 million US dollars.

Today National Joint - Stock Company "Naftogaz of Ukraine" and Keppel FELS Limited company (Singapore) signed the contract for delivery of two semi-submersible marine drilling rigs (SSDR), the value of the contract is 1 billion 226 million US dollars. The contract will only become effective when certain agreed conditions have been met.

Pursuant to the terms of the contract the semi-submersible marine drilling rigs must be new, furnished with all necessary equipment and capable of drilling wells of no less than 9000 meters at sea depth up to 1000m .

According to geological studies’ data, principal reserves of crude hydrocarbons in the Black Sea basin lay on the depth varying within the limit of 120-1000 meters. On middle depth of the sea, the primary objects for development with semi-submersible marine drilling rigs are Pallas area ( sea depth of 450-850 m), and for geological survey and exploration – the aquatory of the shelf near Kerch, Scythian and Foros areas. Estimated deposit reserves of non-associated gas in Pallas area are approximately 120 billion cubic meters (with Ukrainian part thereof in the amount of 86 bcm), liquefied gas - 8.6 billion cubic meters (with Ukrainian part thereof in the amount of 8.2 bcm), oil and gas condensate - 70 million tons (with Ukrainian part thereof in the amount of over 45 million tons).

Purchase of high-tech and efficient drilling equipment for exploration and operations in shallow (with depth up to 120m) and mid-depth (120 - 1000m) areas is a necessary pre-requisite for expansion of domestic production of hydrocarbons, minimization of expensive imports of energy carriers as well as for assurance of our country’s energy independence.

After signing the contract, Deputy Chairman of the Board of "Naftogaz of Ukraine" Vadym Chuprun congratulated Keppel FELS Limited on winning the contest. The Deputy Chairman noted with satisfaction the fact of further cooperation with such a well-known international manufacturer of marine drilling rigs. "Ukraine today reinforces and consolidates its leading position in the Black Sea shelf development and will become a key player in the region.This modern equipment enables us to quickly proceed on an efficient exploration and development of the Black Sea and Sea of Azov shelves; to create new jobs and educate qualified specialists, to be confident in achieving energy independence of our country," he said.

Mr. Wong Kok Seng, Managing Director of Keppel FELS Limited, in his turn said, that they were honored to assist “Naftogaz of Ukraine” in achieving its goals in Ukrainian shelf development, and assured that these semi-submersible marine drilling rigs would be designed to meet the customer’s specific needs and equipped with the most modern facilities and technologies.

“We are honored to work again with "Naftogaz of Ukraine" and to construct rigs for the Black Sea. This task is extremely high-precision and a serious challenge. And we believe that "Naftogaz of Ukraine" will be able to successfully operate this equipment," said Mr. Wong Kok Seng.

Reference. In September 2012 National Joint-Stock Company "Naftogaz of Ukraine" announced an open contest for supply of two semi-submersible marine drilling rigs and sent official invitations to take part in it to 4 Ukrainian and 11 international companies; five more international companies by their own initiative addressed "Naftogaz of Ukraine" to obtain tender documents.

Tender proposals for delivery of two SSDR were submitted by the following companies: Rigas Kugu Buvetava (Latvia, cost of the proposal: USD 1 399 600 000 ), Keppel FELS (Singapore, cost of the proposal: USD 1 226 000 000), Magic Worldwide LTD (Belize, cost of the proposal: USD 1 500 000 000), Aida Holding Ltd (Belize, cost of the proposal USD1 400 000 000).

On November 16th of the present year “Keppel FELS Limited (Singapore) was announced the winner of the tender for procurement of two semi-submersible marine drilling rigs (SSDR).


Public Relations Department
National Joint-Stock Company “Naftogaz of Ukraine”


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