Keppel Offshore & Marine (O&M) has signed agreements for the utilization of two KFELS B Class rigs to be deployed in Saudi Arabia. These bareboat contracts are expected to generate revenue of about $135 million for Keppel O&M, including modification works to prepare them for deployment. The two rigs will be chartered by ADES Saudi Limited Company for a period of five years commencing in Q4 2022.
“We are pleased to secure bareboat charter contracts for two of our jackup rigs, riding on improving conditions in the oil and gas market,” said Chris Ong, Keppel O&M CEO. “These charters attest to the good demand for Keppel O&M’s proven state-of-the-art KFELS B Class rig in markets such as the Middle East, where our proprietary design has established an unrivaled operational track record. With superior drilling efficiency and proven high performance, our modern KFELS B Class rigs are an economical and attractive proposition for operators and oil companies looking to ramp up exploration activities.”
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 an asset company that is majority-owned by external investors on legal completion.