Keppel Corp (Report from UOB Kay Hian)

Keppel Corp may rise after its unit Keppel FELS won a 132 mln usd rig-building contract from SeaDrill Ltd. The order is expected to be delivered in the second quarter of 2008. The contract was secured via an option given to Odfjell Partners Ltd when it ordered its first rig in March 2004. Odfjell placed an order for its second rig in March last year. In mid-2005, SeaDrill acquired Odfjell Invest Ltd and was given the right to exercise Odfjell's option with Keppel FELS. Yesterday Keppel Corp closed 0.20 sgd higher at 13.40.