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Keppel inks deal with Borr Drilling for Transocean rigs

Written by  Tuesday, 21 March 2017 01:19
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Singaporean rig builder Keppel FELS has entered into an agreement with Borr Drilling to take over the contracts and remaining payments for five jackup rigs ordered by Transocean.

In November 2013, Switzerland-based Transocean had ordered five KFELS Super B Class jackup rigs from Keppel FELS for US$1.1 billion and made a 20% down payment.

Norwegian contractor Borr Drilling will take over the contracts and undertake the remaining payment installments to Keppel FELS.

The price for each rig is $216 million, compared to the original price of $219 million. Borr Drilling will also make a down payment of $275 million.

Completion of the transaction is expected to take place by the end of May.

The rigs, designed to operate in 400ft water depth and drill to 35,000ft, were originally scheduled for delivery between 2016 and 2017 but had been deferred by Transocean to 2020.

The first three rigs will now be delivered between 2017 and 2018 while the remaining two rigs will be delivered in 2020.

This deal is part of a larger $1.35 billion agreement inked by Borr Drilling with Transocean on 20 March, for the acquisition of 15 high specification jackup rigs.

It comprises of 10 rigs in Transocean’s fleet and the five KFELS Super B Class newbuilds under construction in Keppel FELS.

Image: KFELS B Class jackup / Keppel Offshore & Marine

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