Keppel Delivers First Of Three Jack-Ups To ADNOC Drilling

Keppel Delivers First Of Three Jack-Ups To ADNOC Drilling
Keppel Offshore & Marine has delivered the first of three jack-up rigs to ADNOC Drilling.

Keppel Offshore & Marine, through its wholly-owned subsidiary Keppel FELS, has delivered the first of three jack-up rigs to ADNOC Drilling.

The three rigs were part of a series of five rigs that Keppel FELS had been building for Borr Drilling. Keppel O&M agreed with Borr Drilling to accelerate the delivery of three jack-up rigs to Borr Drilling or a third party to whom Borr Drilling intends to sell the rigs between October 2022 and July 2023.

The construction contracts for the three rigs have since been novated by Borr Drilling to ADNOC Drilling.

Keppel O&M has received a full payment of approximately $160 million having delivered the first rig. As part of the novation agreement, Keppel O&M will also receive full payments for each of the two remaining rigs on delivery. The Singapore firm expects to receive at least $352 million for all three rigs between 2022 and 2023. This is in addition to down payments Keppel O&M initially received from the previous customers for the rigs.

“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. Keppel O&M stands ready to support our customers with additional modification services as they prepare their rigs for deployment.”

“With the novation of the three jack-up contracts to ADNOC Drilling, we have even greater certainty of delivering these rigs, receiving more cash payments sooner, and reducing Keppel O&M’s financial exposure to the legacy assets.”

“Our high quality and cost-effective KFELS B Class family of rigs have a strong track record in the Middle East. Since the start of 2022, all nine of our proprietary jack-up rigs have been contracted for deployment in the Middle East. As drilling rig utilization rates continue to increase, we are seeing more demand for high-quality rigs that our legacy rigs are well suited to meet,” Tan Leong Peng, Managing Director of New Builds at Keppel O&M, said.

This first rig delivered is built to the KFELS Super B Class design, which can operate in water depths of over 400 feet, drilling to depths of 35,000 feet, and drilling deep wells both vertically and horizontally. It will be equipped with an advanced and fully-automated high-capacity rack and pinion jacking system, self-positioning fixation system, and also has accommodation with full amenities for 150 persons. 

To contact the author, email bojan.lepic@rigzone.com


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