Keppel, Borr Drilling finalize five-jackup deal

Keppel Corp. Ltd. has finalized agreements for Borr Drilling to acquire the construction contracts of five jackups that its subsidiary Keppel FELS had been building for Transocean Ltd.

Offshore staff

SINGAPOREKeppel Corp. Ltd. has finalized agreements for Borr Drilling to acquire the construction contracts of five jackups that its subsidiary Keppel FELS had been building for Transocean Ltd.

As first announced in March,Borr Drilling will take over the contracts of the five jackup rigs from Transocean and undertake the remaining payment installments to Keppel FELS. The rigs were ordered in 2013.

The price for each rig, which includes the milestone payments already made by Transocean, is $216 million, compared to the original contract price of $219 million. Borr Drilling will make a down payment of $275 million within two weeks.

Based on the agreements signed, the first three rigs will now be delivered in 1Q 2018, 2Q 2018, and 2Q 2019 respectively, while the remaining two rigs will be delivered in 2020.

Keppel said in March’s announcement that the delivery dates of the five rigs were originally between 2016 and 2017, but had been deferred by Transocean to 2020.

This deal is part of a larger deal between that seesBorr acquiring 15 high-spec jackups from Transocean. Five of the 15 are the newbuilds under construction at Keppel FELS.

06/01/2017

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