Keppel secures work for two more jackup rigs

May 24, 2022
Keppel Offshore & Marine Ltd. has signed contracts for the bareboat charter of another two KFELS B Class rigs to be deployed in the Middle East.

Offshore staff

SINGAPORE — Keppel Offshore & Marine Ltd. has, through its wholly owned subsidiaries, signed contracts for the bareboat charter of another two KFELS B Class rigs to be deployed in the Middle East, according to a recent company news release. 

The rigs will be chartered to an established drilling company in the Middle East for deployment in fourth-quarter 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 onsite operations, is expected to be up to S$120 million.                                                   

These contracts come on the back of two bareboat charters by Keppel O&M announced on May 9.

The two rigs to be used for these charters will be from the terminated newbuild rig contracts with certain customers that Keppel O&M announced on April 13.

As part of the definitive agreements Keppel Corp. 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. 

The above bareboat charter contracts are not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corp. Ltd. for the current financial year. 

“With jackup utilization rates increasing, we are also seeing demand for rig charters and sales enquiries improve," said CEO Chris Ong. "Putting the legacy rigs to work will improve the overall marketability of these assets while reducing holding costs. As we secure more bareboat charter contracts, our legacy rigs will become increasingly valuable to both rig operators as well as potential investors.”    



ID 95007664 © Chakarini |
Jackup Rig Being Transported Dreamstime M 95007664
(Courtesy Keppel Offshore & Marine)
Keppel Shipyard Aerial
(Courtesy Keppel Offshore & Marine)
The topsides for Ørsted’s Greater Changhua 1 & 2a offshore substations.