KEPPEL O&M SELLS FIVE EXISTING JACKUPS TO BORR DRILLING

May 17, 2018

Keppel Offshore & Marine (Keppel O&M) has through its wholly-owned subsidiary, Keppel FELS, signed a Master Agreement with Borr Drilling Limited (Borr Drilling) for the sale of five jackup rigs for a total value of approximately US$745m.
These are existing jackup rigs which are currently being built by Keppel FELS to the KFELS B class designs.
The total price of the five rigs excludes any down payments made by the respective original owners.
The Master Agreement will become effective upon the satisfaction of certain conditions, including Borr Drilling raising sufficient funds, and the relevant sales and purchase agreements for the individual rigs having been entered into.
Borr Drilling will pay a first instalment of US$288 million within 20 business days of the effective date of the Master Agreement and the remaining amounts are payable within five years from the respective delivery dates of each individual rig, on a seller’s credit with interest at market rates.
The rigs are scheduled to be delivered progressively from 4Q 2019 to 4Q 2020, with one rig to be delivered in 2019 and four rigs in 2020.
CEO of Borr Drilling, Mr Svend Anton Maier, added, “We are pleased to be getting another five high quality jackup rigs from Keppel FELS on top of the five we acquired earlier. Our partnership with Keppel is crucial as it enables us to provide the market with the latest in jackup rig technology, safety and operability. This is an opportune time for us to grow our fleet of highly capable jackup rigs as the market is showing signs of recovery from the bottom of the business cycle.”
Borr Drilling has also acquired nine existing jackups built at PPL Shipyard in Singapore. (Source: Keppel O&M – Image: Borr Natt derrick as it appears at PPL shipyard among the idle newbuilds/ReneP/energy global news)

 

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