Keppel, Borr firm up delivery dates for five jack-ups

Following the sale of Transocean’s entire fleet of jack-up rigs to Borr Drilling, including those under construction at Keppel’s yard, the rig builder and the new owner have set the dates for the delivery of these rigs. 

To remind, the sale, announced in March, included Transocean’s 10 high-specification jack-ups and five jack-ups under construction at Keppel FELS shipyard in Singapore.

Transocean completed the transaction to sell the rigs for a total consideration of $1.35 billion on Wednesday, May 31.

Keppel then announced on Thursday it has signed the relevant definitive agreements with Borr Drilling to novate the construction contracts of the five jack-up rigs currently being built for Transocean to Borr Drilling.

Under the terms of the agreements, Borr Drilling will take over the contracts of the five jack-up rigs from Transocean and undertake the remaining payment installments to Keppel FELS. The price for each rig, which includes the milestone payments already made by Transocean, is $216 million, compared to the original contract price of $219 million.

Borr Drilling will make a down payment of $275 million within two weeks.

Keppel also said that, based on the agreements signed, the first three rigs will now be delivered in 1Q 2018, 2Q 2018 and 2Q 2019 respectively, while the remaining two rigs will be delivered in 2020.

Offshore Energy Today Staff