Keppel buys LeTurneau. Expands jack-up designs offering
- Business & Finance
Singapore’s offshore rig builder Keppel Offshore & Marine has completed the acquisition of Cameron International Corporation’s offshore product division, which comprises the LeTourneau jack-up rig designs, rig kit business, as well as its aftersales and aftermarket services.
The acquired company will operate as Keppel LeTourneau with offices in the United States, United Arab Emirates and Singapore. The acquisition will not only broaden Keppel O&M’s suite of jack-up rig designs but also expand its business in the provision of aftersales and aftermarket services, Keppel, one of the world’s largest rig builders said in a statement on Tuesday.
Chow Yew Yuen, CEO of Keppel O&M said, “Keppel O&M is the world’s leading provider of offshore jack-up rigs. This strategic acquisition will complement Keppel O&M’s existing capabilities and enable us to provide our customers with a full suite of end-to-end jack-up rig solutions. With Keppel’s and LeTourneau’s combined engineering resources, international shipyard presence and design and equipment manufacturing competencies, we are confident of providing even better value-added solutions to drilling operators.”
Keppel said that, with this acquisition, it will expand its jack-up rig designs offering to more than 26 designs for jack-up rigs “covering almost every requirement and condition in the market”.
Keppel will have the flexibility to customise and build the LeTourneau jack-up rigs from Keppel yards worldwide or license the design to any client or shipyard through the sale of rig kits. The rig kits include jack-up leg components, elevating units/jacking systems and cantilever/skidding systems. Marine equipment such as cranes and anchor winches are also options in the rig kits.
The LeTurneau suite of jack-up rig designs is well established with a proven track record of operating in a variety of environments. This includes the LeTurneau Super 116E, WORKHORSE™, Super Gorilla XL and Jaguar.
Expanded client base
As for the aftersales and aftermarket services, these encompass the sale of spare parts, field service (troubleshooting, inspection, installation and commissioning), operator training, repair and refurbishment of equipment and bespoke engineering services.
Some 260 or 40% of the jack-up rigs currently in the market belong to either LeTourneau or Keppel designs. Of these, more than 100 rigs are over 15 years old and require regular servicing. Besides repairs, upgrades and modifications, jack-up rigs are required to undergo five-year class recertification special periodic surveys.
With 20 yards around the world which are near market and near customer, Keppel O&M will be able to service LeTourneau rigs for their owners wherever they are, more quickly and efficiently, expediting the rigs’ return to work, the company said.
Chow Yew Yuen added, “With the current low oil price, rig owners are looking more at repairing and upgrading their current fleets. The LeTourneau acquisition has expanded our client base, and will improve our service offerings to rig operators in helping them maintain their assets more cost-effectively. In addition, we are confident that our end-to-end packages, from rig design and construction to aftersales and aftermarket services, will be attractive to customers because they will be assured of greater reliability in product quality as well as follow up services.”