Under the MoU, signed on August 5, 2007, Keppel Oil and TOGICO agreed to form a Labuan, Malaysia-based joint venture offshore company to build, own, and operate mobile offshore jack-up drilling rigs. The JV will build the first of the rigs at Labuan Shipyard. The rig will use the Gusto MSC design, cantilever jack-up drilling type CJ46-X100D, and its cost will not exceed US$155 million.
SAAG's subsidiary, SAAG Drilling and Well Services Sdn Bhd, owns a workover rig and already provides workover and well maintenance services. According to SAAG, the JV transaction will allow it to complement and expand its rig business to include jack-up rigs.
In exchange for Keppel Oil's assignment of its TOGICO stake to SAAG, SAAG will transfer or cause to be transferred to Keppel Oil or its nominee 40% of the entire issued and paid-up capital of Sepworth Investments Limited (SIL). SIL will also invest up to US$8 million in the JV, in which SIL will hold 25% equity interest. TOGICO will hold the remaining 75% in the JV.
Formed in 2004 and existing under the laws of the Islamic Republic of Iran, TOGICO is involved in oil and gas activities, vehicles, transportation, and production of compressed natural gas capsules. The Social Security Investment Company Iran owns 100% of TOGICO's 30 million shares.
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