Keppel seals deal with Borr Drilling for 5 jackup rigs

The latter will be making a down payment of US$275m.

Keppel announced that its agreements with Borr Drilling to novate the construction contracts of the five jackup rigs currently being built by Keppel FELS for Transocean Ltd (“Transocean”) to Borr Drilling has been closed.

Under the deal, Borr Drilling will take over the contracts of the five jackup 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 USD$216m compared to the original contract price of USD$219m. Borr Drilling will make a down payment of USD$275m within two weeks.

The first three rigs will be delivered in 1Q18, 2Q18, and 2Q19, respectively. The remaining two rigs will be delivered in 2020.