Keppel Corp

Keppel Corp: Deutsche highlights that Keppel Corp is leading the race for an approximate US$2b contract to supply Transocean with up to 10 high specification jackup drilling units. An article from Upstream noted that Keppel Corp had proposed building its KFELS Super B Class design, which has a proven track record with Transocean. However, the contest may not be over with Shanghai Waigaoqiao Shipbuilding still in the running with the strong backing from the Chinese banks. Apart from the two, other yards invited to bid include Jurong Shipyard, PPL Shipyard, Dalian Shipbuilding, CIMC Raffles, Daewoo Shipbuilding and Samsung Heavy. Recent comments from the offshore drillers suggest continued optimism on prospects in both deepwater and shallow water markets. The positive outlook is based on secured long-term contracts, stable crude oil prices and exploration successes by oil companies. Keppel Corp's year-to-date wins total $5.3b and it appears on track to reach DB's FY13 estimate of S$6.5b.