Keppel, Borr Drilling agree on delivery schedule for jackup rigs

Oct. 12, 2022
Singapore's Keppel has reached a deal with the offshore drilling company Borr Drilling over the delivery schedule for five jackup rigs ordered previously by Borr.

Offshore staff

SINGAPORE  Keppel Offshore & Marine Ltd. has entered into an amended and restated framework deed with Borr Drilling and certain of its subsidiaries to accelerate the delivery of three of the five undelivered jackup rigs to Borr Drilling (or a third party whom Borr Drilling intends to sell the rigs to) between October 2022 and July 2023.

The seller’s credit arrangements for two of these three jackup rigs will be cancelled, and all three jackup rigs will be delivered without any seller’s credit arrangement. The overall aggregate of the various seller’s credit arrangements being made available by Keppel O&M will be significantly reduced by more than 35%. All three jackup rigs will be delivered with full payments on delivery, amounting to at least US$352 million in aggregate. These new arrangements are effective immediately.

The remaining two of the five undelivered jackup rigs will have their scheduled deliveries to Borr Drilling deferred to 2025. 

The five jackup rigs form part of the Identified Asset Co Assets to be transferred to Rigco Holding Pte. Ltd. as part of the Asset Co Transfer pursuant to the Asset Co framework agreement. There is no change to the intended Asset Co Transfer arising from the entry into of the Amended and Restated Framework Deed.