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Keppel closes deal with Borr Drilling

Written by  Thursday, 01 June 2017 20:27
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Keppel FELS said it has signed the relevant agreements with Borr Drilling to novate the construction contracts of the five jackup rigs currently being built by Keppel for Transocean to Borr Drilling.

The Singaporean shipbuilder said Borr Drilling, a Norwegian contractor, will take over the contracts from Transocean and undertake the remaining payment installments.

The price for each rig, which includes the milestone payments already made by Transocean, is US$216 million, compared to the original contract price of $219 million. Borr Drilling will make a down payment of $275 million within two weeks. 

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

However, based on the new agreements, the first three rigs will now be delivered in Q1 2018, Q2 2018, and Q3 2019 respectively, while the remaining two rigs is scheduled for delivery in 2020.

Last month, Keppel secured an SG$103 million deal with another Norwegian contractor, Stolt-Nielsen Gas B.V., to build two liquefied natural gas (LNG) carrier vessels by Q2 and Q3 2019 respectively.

Each vessel will have a capacity of 7500m3, and come equipped with engines that can run on both diesel and LNG. The carriers will have a class notation for bunkering which adds to their versatility to not only transport but also provide LNG bunkering services if required.

Read more:

Keppel inks deal with Borr Drilling for Transocean rigs

Transocean delays five jackups

Image: KFELS B Class jackup / Keppel Offshore & Marine

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