Singapore’s Keppel Offshore & Marine has sealed contracts for the bareboat charter of two jackup rigs to be deployed in the Middle East.
The rigs will be chartered to an undisclosed drilling company in the Middle East for a period of three years, commencing in Q4 2022, with an option for a one-year extension. The charters, including options and modification works, are expected to be worth up to S$120m ($87.3m).
Earlier this month, Keppel inked a five-year deal with offshore rig operator ADES for two jackup rigs to be deployed in Saudi Arabia.
Chris Ong, CEO of Keppel Offshore & Marine, commented: “We have built a strong track record and trust in the industry for delivering rigs that are robust, versatile and capable of working in a wide variety of geographies. The multiple charter contracts that we have recently secured reflect the improving market sentiments, and attest to the value we are able to provide to rig operators with our proven KFELS B Class rigs.
“With jackup utilisation rates increasing, we are also seeing demand for rig charters and sales enquiries improve. Putting the legacy rigs to work will improve the overall marketability of these assets while reducing holding costs. As we secure more bareboat charter contracts, our legacy rigs will become increasingly valuable to both rig operators as well as potential investors.”
The two rigs to be used for the charters are from terminated construction deals agreed with an affiliate of Clearwater Capital Partners and Fecon International.