Singaporean company Keppel Offshore & Marine has entered a master agreement through its wholly owned subsidiary Keppel FELS to sell five existing jackup rigs to Bermuda-based Borr Drilling for around $745m.

Under the deal, Borr Drilling will pay $288m in the first instalment within 20 business days from the effective date of the agreement.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The remaining amounts will be paid within five years from the respective delivery dates of each rig.

Keppel Offshore & Marine CEO Chris Ong said: “The agreement with Borr Drilling demonstrates that rig owners continue to look for reliable, high-quality rigs, such as the KFELS B Class, to maximise efficiency and productivity.

“This is a win-win agreement for all parties and enables Keppel O&M to further improve our cashflow, minimise the holding risks of the projects, and clear several of the deferred orders.”

“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.”

The rigs are being built by Keppel FELS, and are set to be delivered progressively from the fourth quarter of next year to the same period in 2020.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

One of the rigs will be delivered next year, and the remaining in 2020.

Borr Drilling CEO Svend Anton Maier said: “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.”

The agreement is subject to certain conditions and relevant sales and purchase agreements for the individual rigs.