Keppel O&M, Borr Drilling defer delivery of five jackup rigs for the second time

KEPPEL Corp announced on Thursday that its wholly-owned subsidiary Keppel Offshore & Marine (Keppel O&M) had entered into a second framework deed with Borr Drilling to defer delivery of five jackup rigs to 2023.

This is the second time they have put off on the scheduled delivery of the rigs, after the first agreement was announced last year.

The rigs will be delivered progressively with the first delivery in May 2023 and the final delivery in December 2023, Keppel Corp said in the announcement.

The new agreement also included a clause to allow payment of the interest due to Keppel O&M to be deferred.

Keppel Corp said the framework deed will become effective upon the satisfaction of certain conditions, including Borr Drilling obtaining key creditor consents.

The new agreement would not have an impact on the net tangible assets or earnings per share of Keppel Corp for the current financial year, the company added.