Keppel sends more oil drilling rigs to Middle East in $87.2m deal

Keppel sends more oil drilling rigs to Middle East in $87.2m deal

Singapore rig builder Keppel Offshore & Marine (Keppel O&M) will send another two jack-up rigs to the Middle East in a deal worth up to S$120 million (US$87.2 million) as the oil and gas market improves.

“The rigs will be chartered to an established drilling company in the Middle East for deployment in 4Q 2022 for a period of three years, with options for a year’s extension. Total revenue from the charters, including the options and modification works by Keppel O&M to prepare the rigs for on-site operations, is expected to be up to S$120m,” Keppel said in a statement today.

These contracts come on the back of two bareboat charters to Saudi Arabia announced by Keppel O&M on 9 May 2022, reflecting the growing demand for Keppel’s high-quality jack-up rigs amidst the improving oil and gas market, noted the company.

Chris Ong, CEO of Keppel O&M, said, “we have built a strong track record and trust in the industry for delivering rigs that are robust, versatile and capable of working in a wide variety of geographies. The multiple charter contracts that we have recently secured reflect the improving market sentiments, and attest to the value we are able to