Keppel secures jackup rig charters from ADES Saudi worth up to S$155m

Keppel secures jackup rig charters from ADES Saudi worth up to S$155m

Keppel Offshore & Marine Ltd (Keppel O&M) through its wholly-owned subsidiaries, signed bareboat charter contracts with ADES Saudi Limited Company for two jackup rigs to be deployed in Saudi Arabia.

This brings the total number of rigs Keppel O&M has on charter with ADES to four.

The charters will be for a period of five years, expected to commence in 1H 2023, and projected to generate total revenue of about S$155 million for Keppel O&M, which includes modification works to prepare the rigs for deployment.

These are the fifth and sixth bareboat charters secured by Keppel O&M this year, pointing to the continued demand for more high quality drilling rigs of Keppel’s proven KFELS B Class design.

The two rigs to be used for these charters are the Cantarell III and Cantarell IV jackup rigs which were under bareboat charters with subsidiaries of Grupo R[2]. These charters have since been terminated due to unremedied events of default under the bareboat charters by the charterers[3]. The rigs, which will be renamed ADM685 and ADM686, are currently in Mexico and will be transported to Saudi Arabia for modification works before commencing their charters for ADES.

Mr Tan Leong Peng, Managing Director (New Builds) of Keppel O&M, said,