Keppel Offshore & Marine has delivered the first of three jackup rigs to its Abu Dhabi based customer ADNOC Drilling Company PJSC (ADNOC Drilling), and received payment of US$160 million.
Keppel expects to receive at least US$352 million for all three rigs between 2022 and 2023. This is in addition to down payments Keppel had initially received from the previous customers for the rigs.
These three rigs were part of a series of five rigs that Keppel was originally building for Borr Drilling.
“We are pleased to support ADNOC Drilling in the growth of their rig fleet and drilling operations with the delivery of the first of three newbuild rigs,” says Tan Leong Peng, managing director (new builds) of Keppel O&M.
“Keppel O&M stands ready to support our customer with additional modification services as they prepare their rigs for deployment,” he adds.
Tan adds that with novation of these three rigs from Borr to ADNOC Drilling, Keppel will receive its payments more quickly and thereby reduce its financial exposure to what it deems “legacy assets”.
Keppel O&M is poised to be merged with Sembcorp Marine.
As part of the deal, these three rigs are classified as part of Keppel O&M’s legacy rigs, and such rigs as well as any sales proceeds, will be transferred to Asset Co that is majority-owned by external investors on legal completion.
Keppel shares closed Nov 24 at $7.49, up 0.81%.