Keppel’s RigCo, Seatrium to complete four offshore rigs in deal worth over S$500 million
The drillship and jackup rig are expected to be delivered in 2027 and 2028, respectively.
Keppel’s subsidiary RigCo and Seatrium have signed a contract worth more than S$500 million to complete construction on four offshore rigs. The rig portfolio includes a seventh-generation drillship, a harsh-environment jackup rig, and two mid-water semisubmersibles. These vessels are designed to withstand challenging conditions in north-west Europe and are expected to be delivered in 2027 and 2028.
The construction work is being carried out under an existing master services arrangement between the two companies, with funding coming from RigCo's cash reserves. The delivered rigs are anticipated to enter charter opportunities, which could eventually be monetised through the Keppel Offshore Fund. Offshore rig market conditions are improving following a decade of limited newbuild activity and the retirement of older rigs.
Cindy Lim, Keppel's CEO and non-executive director of RigCo, expects increasing demand for deepwater and harsh environment rigs due to higher utilisation rates, an ageing global drilling fleet, supply constraints, and growing energy security needs. This contract marks a significant milestone in Keppel's strategy to transform its in-progress offshore rigs into profitable assets through the Keppel Offshore Fund, managed in collaboration with Apollo.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Stocks to watch: Keppel, Seatrium, OUE Reit, Wilmar and more businesstimes.com.sg
