Keppel O&M secures rig charter contracts worth up to S$120 million
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Michelle Zhu
KEPPEL Offshore & Marine’s (O&M) wholly-owned subsidiaries have signed contracts for the bareboat charter of 2 KFELS B Class rigs.
In a press statement on Tuesday (May 24), Keppel Corp said the jackup rigs will be chartered to “an established drilling company” in the Middle East for deployment in the fourth quarter of 2022 for 3 years, with options for a year’s extension.
Including the options for extension and modification works to prepare the rigs for on-site preparations, total revenue for the charters is expected to be up to S$120 million.
The 2 rigs to be used for these charters will be from previously-terminated newbuild rig contracts with certain customers of Keppel O&M. The rigs and their bareboat charter agreements are part of the O&M unit’s legacy rigs.
These latest contracts follow on the heels of another 2 bareboat charters by Keppel O&M announced by the group earlier in May.
The multiple contracts secured of late reflect a growing demand for Keppel’s jackup rigs amid the recovering oil and gas market together with improving market sentiments, said the group in its press statement.
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“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,” said Chris Ong, chief executive of Keppel O&M.
Shares of Keppel Corp ended Tuesday down S$0.04 or 0.6 per cent at S$6.73.
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