Keppel O&M to begin charters for four rig assets in Saudi Arabia

All four rigs are capable of operating in water depths of 122m and drill to a depth of about 9,140m. PHOTO: KEPPEL CORP

SINGAPORE - Keppel Offshore & Marine (O&M) has completed modification works on four KFELS B Class jackup rigs, which will be deployed on bareboat charters in Saudi Arabia in October, Keppel Corp announced on Friday (Oct 14).

In a bourse filing, the company said the rigs will be chartered in pairs to Arabian Drilling Company (ADC) and ADES Saudi Limited Company respectively, and will yield a total charter revenue of about $250 million over three to five years.

ADC's rigs were handed over to the company on Oct 13 and will be deployed for three years in Saudi Arabia to work for Saudi Aramco, the country's national oil company, with an option for a year's extension.

The two rigs deployed to ADES will similarly be deployed to Saudi Aramco for five years.

All four rigs are capable of operating in water depths of 122m and drill to a depth of about 9,140m.

"As utilisation and day rates continue to rise, we are seeing demand for modern, high-specification jackup rigs grow," managing director of new builds for Keppel O&M Tan Leong Peng said, adding that all of the company's legacy KFELS B Class rigs have been contracted.

Notably, the four rigs and their bareboat charter agreements form part of Keppel O&M's legacy rigs and will be transferred to Asset Co, which is majority-owned by external investors, upon the completion of the proposed merger between Keppel O&M and Sembcorp Marine.

Keppel shares were trading down six cents, or 0.9 per cent, lower at $6.62 at 9.19am on Monday after the announcement. THE BUSINESS TIMES

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