Keppel Offshore & Marine (Keppel O&M), through its wholly-owned subsidiary Keppel FELS, has delivered the first of three jackup rigs to ADNOC Drilling.
The three rigs were part of a series of five rigs that Keppel FELS had been building for Borr Drilling. As set out in Keppel’s announcement dated 12 October 2022, Keppel O&M entered into an agreement with Borr Drilling and certain of its subsidiaries to, among other things, accelerate the delivery of three jackup rigs to Borr Drilling (or a third party whom Borr Drilling intends to sell the rigs to) between October 2022 and July 2023. The construction contracts for the three rigs have since been novated by Borr Drilling to ADNOC Drilling, and this is the first of three rigs to be delivered to ADNOC Drilling.
Keppel O&M has received a full payment of approx. US$160 million having delivered the first rig. As part of the novation agreement, Keppel O&M will also receive full payments for each of the two remaining rigs on delivery. Keppel O&M expects to receive at least US$352 million for all three rigs between 2022 and 2023. This is in addition to down payments Keppel O&M had initially received from the previous customers for the rigs.
Mr Tan Leong Peng, Managing Director (New Builds) of Keppel O&M said:
'We are pleased to support ADNOC Drilling in the growth of their rig fleet and drilling operations with the delivery of the first of three newbuild rigs. Keppel O&M stands ready to support our customer with additional modification services as they prepare their rigs for deployment.
'With the novation of the three jackup contracts to ADNOC Drilling, we have even greater certainty of delivering these rigs, receiving more cash payments sooner, and reducing Keppel O&M’s financial exposure to the legacy assets.”
Source: Keppel O&M
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