Keppel Offshore & Marine contracted for two jackups in Middle East

Keppel Offshore & Marine has signed contracts for the bareboat charter of another two KFELS B Class rigs to be deployed in the Middle East. The rigs will be chartered to an established drilling company in the Middle East for deployment in Q4 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 on-site operations, is expected to be up to $120 million.

“We have built a strong track record and trust in the industry for delivering rigs that are robust, versatile and capable of working in a wide variety of geographies. The multiple charter contracts that we have recently secured reflect the improving market sentiments, and attest to the value we are able to provide to rig operators with our proven KFELS B Class rigs,” said Chris Ong, CEO of Keppel O&M.

The two rigs to be used for these charters will be from the terminated newbuild rig contracts with certain customers that Keppel O&M had announced on 13 April 2022.

As part of the definitive agreements Keppel Corporation 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, which is majority-owned by external investors, on legal completion.