Keppel signs agreement to sell five existing rigs to Borr Drilling for about US$745m
Keppel Offshore & Marine Limited (Keppel O&M) has through its wholly-owned subsidiary, Keppel FELS Limited (Keppel FELS), signed a Master Agreement with Borr Drilling Limited (Borr Drilling) for the sale of five jackup rigs for a total value of approximately US$745m, the company said in its press release.
These are existing jackup rigs which are currently being built by Keppel FELS to the KFELS B class designs.
The total price of the five rigs excludes any down payments made by the respective original owners.
The Master Agreement will become effective upon the satisfaction of certain conditions, including Borr Drilling raising sufficient funds, and the relevant sales and purchase agreements for the individual rigs having been entered into.
Borr Drilling will pay a first instalment of US$288 million within 20 business days of the effective date of the Master Agreement and the remaining amounts are payable within five years from the respective delivery dates of each individual rig, on a seller's credit with interest at market rates.
The rigs are scheduled to be delivered progressively from 4Q 2019 to 4Q 2020, with one rig to be delivered in 2019 and four rigs in 2020.
The above transaction is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year. It is not expected to result in any write-downs on the projects.
About Keppel Offshore & Marine and Keppel FELS
Keppel FELS is a subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), a wholly-owned company of Keppel Corporation Limited. Keppel FELS is a leading designer, builder and repairer of high-performance mobile offshore rigs. Its portfolio of proprietary designs and floating production solutions meets a broad spectrum of operating requirements, including deep waters and harsh environments.
As a group, Keppel O&M is also a leader in ship repair and conversion, and specialised shipbuilding. Its near market, near customer strategy is bolstered by yards and offices in some 15 countries across the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be the provider of choice and partner for solutions for the offshore and marine industry.
About Borr Drilling
Borr Drilling is an international drilling contractor that owns and operates jack-up rigs of modern and high-specification designs providing drilling services to the oil and gas exploration and production industry worldwide in water depths up to approximately 400 feet.