• Natural Gas News

    Keppel O&M secures two jackup rig charter contracts

Summary

The rigs will be chartered to a drilling company in the Middle East for deployment in 4Q 2022 for a period of three years, with options for a year’s extension.

by: Shardul Sharma

Posted in:

Complimentary, Natural Gas & LNG News, Asia/Oceania, Middle East, Security of Supply, Corporate, Exploration & Production, Contracts and tenders, News By Country, Singapore

Keppel O&M secures two jackup rig charter contracts

Keppel Offshore & Marine (Keppel O&M) has signed contracts for the bareboat charter of two KFELS B Class rigs to be deployed in the Middle East, it said on May 24.

The rigs will be chartered to a drilling company in the Middle East for deployment in 4Q 2022 for a period of three years, with options for a year’s extension. Total revenue from the charters, including the options and modification, works by Keppel O&M to prepare the rigs for on-site operations, is expected to be up to S$120mn ($87.3mn).                                                  

The two rigs to be used for these charters will be from the terminated newbuild rig contracts with certain customers that Keppel O&M had announced in April 2022.

As part of the definitive agreements Keppel Corporation has signed in connection with the proposed combination of Keppel O&M and Sembcorp Marine, these two rigs and their bareboat charter agreements are part of Keppel O&M’s legacy rigs and will be transferred to Asset Co that is majority-owned by external investors on legal completion.