Keppel Corp confirms talks with Borr Drilling for possible sale of jack-ups

KEPPEL Corporation confirmed The Business Times report on Friday that discussions are ongoing in relation to the possible sale of jack-up rigs to Borr Drilling.

But the conglomerate denied having entered to an agreement on the potential sale and leaseback financing arrangement with Grupo R, a client behind several jack-ups being built at Keppel FELS.

On Friday, The Business Times reported that KOM and Borr Drilling have been in talks for a deal involving the sale and leaseback of six jack-ups.

BT also reported that Keppel Capital has already hooked up with structured finance provider Clifford Capital to potentially extend a sale-and-lease-back arrangement for at least one jack-up contracted by Grupo R.

In its response to the BT article, Keppel Corp did not disclose the number of jack-ups that are being considered for the possible sale to Borr Drilling.

It said that these rigs being considered for sale are currently being built by Keppel FELS, a wholly owned subsidiary of Keppel Offshore & Marine (KOM), adding that the details and terms of any agreement have not been finalised and no definitive agreement has been signed.

While there was no agreement involving the company or any of its subsidiaries on the said potential sale-and-lease-back financing for Grupo R, Keppel said that it is "always open to pursuing opportunities for win-win solutions for our customers".