Keppel Offshore & Marine (Keppel O&M) has entered into a second framework deed with Borr Drilling to defer the scheduled delivery of the five jackup rigs to 2023.

The rigs will be delivered progressively with the first delivery in May 2023, with the final delivery to be made in December 2023.

The deferment comes after Keppel O&M entered into a framework deed on June 5, 2020, to defer the delivery of the rigs to 2022.


See: Keppel O&M enters into framework deed with Borr Drilling


 

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Keppel O&M has indicated that it may sell any of the undelivered rigs to a third party at any time prior to delivery to Borr Drilling. This is provided that Borr Drilling has been notified of Keppel O&M’s intent to sell. Borr Drilling must also be given the option to purchase the rig.

In June 2020, three of the rigs which have already been delivered to Borr Drilling remain partly financed by Keppel O&M through a seller’s credit arrangement.

The second framework deed has further elaborated on the credit arrangement in that interest accruing up to the third year of the drawdown date be deferred to May 2023.

Furthermore, interest accruing from the third to the four year of the drawdown date be payable on the fourth year.

In addition, the final maturity date of the drawdown date will be deferred by one year.

The second framework deed will be become effective when certain conditions, including the obtaining of key creditor consents by Borr Drilling, are fulfilled.

Shares in Keppel Corp closed 8 cents higher or 1.5% up at $5.58 on Jan 27.