Keppel Fels signs definitive agreements with Borr Drilling to take over Transocean order

Keppel Fels employees stand amongst jackup rigs at their shipyard in Singapore.
Keppel Fels employees stand amongst jackup rigs at their shipyard in Singapore.PHOTO: REUTERS

SINGAPORE - Keppel Fels, a unit of Keppel Offshore & Marine, has signed the relevant definitive agreements with Borr Drilling to take over the construction contracts of the five jackup rigs initially ordered by Transocean.

Borr Drilling will take over from Transocean the contracts of the five jackup rigs, which are being built, and undertake the remaining payment instalments to Keppel Fels, said Keppel in a statement on Thursday.

The price for each rig, which includes the milestone payments already made by Transocean, is US$216 million, compared with the original contract price of US$219 million.

Borr Drilling will make a down payment of USD$275 million within two weeks.

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The first three rigs will now be delivered in the first quarter of 2018, the second quarter of 2018 and the second quarter of 2019 respectively. The remaining two rigs will be delivered in 2020.

This transaction will not have any material impact on the net tangible assets and earnings per share of Keppel for the financial year ending December 31.