Keppel delivers jackup rig to Grupo R on sale and leaseback deal
Keppel FELS, a wholly-owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M) has delivered the jackup rig, Cantarell IV, to Grupo R with a perfect safety record. As part of the deal, Grupo R has entered into a sale and leaseback agreement with FELS Asset Co Pte. Ltd. (FELS Asset), a wholly-owned subsidiary of Keppel O&M, the company said in its release.
FELS Asset will purchase the rig from Grupo R for US$179m which is equivalent to the balance contract value of the rig. Cantarell IV will be leased back to Grupo R on a bareboat charter at competitive day rates over five years. IPC, the parent company of Grupo R, will provide a Parent Company Guarantee on Grupo R's charter payment obligations.
Under the bareboat charter, Grupo R has the right to purchase the rig at pre-agreed prices during the term of the bareboat charter. After the fifth year, FELS Asset may, at its discretion, put the rig to Grupo R at a pre-agreed price.
Cantarell IV will be deployed directly to work in offshore Mexico, under an integrated drilling contract for offshore wells secured by IPC with Pemex, which will commence in early May 2019.
Grupo R is well-established as a driller in Mexico, with excellent uptimes and a strong track record of success with difficult wells. The two jackup rigs Keppel FELS delivered to Grupo R in 2016, Cantarell I and Cantarell II, have been drilling for Pemex in Mexico since August 2016 under a seven year charter.
Mexico's current oil production is depleting faster than it is being replenished, and the country is looking to increase its E&P activities. It has stated its intention to boost crude output to reach 2.4 million b/d of oil production by 2024, from 1.8 million b/d today by focusing on upstream investment on shallow water and onshore conventional fields.
The Cantarell IV is a KFELS B Class jackup designed to operate in water depths of up to 400 feet and drill to depths of 30,000 feet. It is equipped with an advanced and fully-automated high capacity rack, pinion jacking system, Self-Positioning Fixation System, and also has accommodation with full amenities for 150 persons.
Cantarell IV is the first rig equipped with Keppel's proprietary RigCare Solution - a suite of digital services to support the rig's lifecycle needs, significantly increasing uptime and safety while reducing maintenance costs.
RigCare features include the use of:
Industrial Internet of Things (IIOT) to enhance automation and mobile operations;
Smart sensors to drive towards condition based class surveys in a joint development project (JDP) with Classification society ABS to lower down time and reduce maintenance costs;
Digital Twin-based analytics to predict machine failure and enhance overall efficiency and robustness with real-time data; and
Real-time optimisation of the rig's operations
About Keppel Offshore & Marine / 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.
Keppel O&M is a global leader in offshore rig design, construction and repair, ship repair and conversion, and specialised shipbuilding. It integrates and harnesses the experience and expertise of yards and offices in 15 countries to be near customers and markets.
About Grupo R
Grupo R is a conglomerate of companies dedicated to the oil, gas and energy sector in México. With more than 5,000 employees nation-wide Grupo R operates in the states of Campeche, Tabasco, Tamaulipas, Veracruz and is headquartered in México City. Its principal activities include: offshore and onshore drilling including ultra-deep water, operation of gas fields, offshore construction and maintenance services, oil & gas infrastructure, EPC projects and specialized transport of onshore drilling rigs.
