Singapore’s Keppel Offshore & Marine has, through its subsidiaries, inked deals with expanding offshore rig operator ADES for the utilisation of two jackup rigs to be deployed in Saudi Arabia.
The five-year bareboat contracts should commence in the fourth quarter of 2022 and generate revenue of about S$135m ($98m) for Keppel O&M, including modification works to prepare them for deployment.
Last month, Keppel O&M announced the termination of newbuild rig deals with an affiliate of Clearwater Capital Partners and Fecon International, which will be used to fulfil the latest contracts.
According to a report by Clarksons Research from April, rig markets have continued to tighten in 2022, with overall utilisation now at its highest level since 2015 and dayrates for jackups and floaters rising noticeably.
“We continue to see strong demand for our rigs, and are actively pursuing more charters, as well as sales opportunities. Our early success at securing new bareboat charters will not only enable us to start generating revenue and cash flows from the legacy assets but also improve the overall marketability of our rigs as we build up their operational track records,” said Chris Ong, CEO of Keppel O&M.