Borr to purchase five current rigs of Keppel for USD 745 million
Category: #world  By Saipriya Iyer  Date: 2018-05-16
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Borr to purchase five current rigs of Keppel for USD 745 million

Borr Drilling, a Norway-based drilling contractor for the oil & gas sector, has entered into a purchase deal with Keppel O&M to acquire five jackup rigs of the latter for nearly USD 745 million. Reportedly, the deal is expected to be carried out between Keppel FELS, a wholly-owned subsidiary of Keppel O&M, and Borr Drilling Ltd.

According to Keppel O&M, these five rigs were the existing ones that were being developed by Keppel FELS as per KFELS B designs. The master agreement between the two firms is dependent on specific conditions that include the payment of nearly USD 288 million by Borr Drilling within 20 days of the date of contract.

Keppel O&M has stated in the deal that the remaining amount of payment by Borr should be made within 5 years from the delivery date of each oil rig. As per authentic sources, the rigs will be transported to Borr during the last quarter of 2019 and the fourth quarter of 2020. For the record, one of the jackup rigs is likely to be dispatched in 2019 while the remaining four rigs will be delivered in 2020.

Chris Ong, the CEO of Keppel O&M, has revealed that the firm’s deal with Borr depicts that the oil rig owners are searching for dependable, high quality rigs for optimizing the output as well as proficiency in drilling oils. He further stated that it is a win-win situation for both the firms, as it would help Keppel to raise the cash flow and reduce the risk holdings of the ventures. The strategic decision is expected to clear out many of the delayed orders of the firm.

The CEO of Borr Drilling is of the view that the acquisition of the jackup rigs will help in expanding its fleet portfolio of effective rigs. He further added that with the oil & gas industry displaying recovery symptoms, it is the best opportunity for the firm to expand its business through this deal.   



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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