Apollo, Keppel launch fund to hold six operational rigs

Apollo Global Management agreed to invest $1.5 billion in Keppel’s new Keppel Offshore Fund, a private fund set up to hold a portfolio of offshore energy assets. Keppel will divest six operational rigs to the fund this year through its subsidiary Rigco Holding for about S$1.2 billion, with Keppel expected to receive roughly $478 million in cash.

Apollo will fund the cash portion of the acquisition, while Keppel will contribute its 50% stake in the fund in kind and continue managing the assets. The divestment forms the first phase of a program to monetize up to 10 legacy rigs held by Rigco for a total of about S$3.7 billion, part of Keppel’s broader push to reduce debt and free up capital for reinvestment.

Keppel intends to complete and divest an additional four rigs, currently at various stages of construction, to the fund between 2027 and 2028, a move that could generate about $988 million in further cash proceeds. The remaining three of Keppel’s 13 legacy rigs are not included in the transaction, with Keppel exploring separate options for their monetization.