Keppel Corporation arm bags $425m deal with drilling contractor Awilco Drilling PLC

It will construct a second mid-water semi-submersible drilling rig for harsh environment use.

Keppel Corporation’s subsidiary Keppel FELS has finalised and entered into a rig construction contract with UK drilling oil and gas wells firm Awilco Drilling PLC (Awilco) for the construction of a repeat mid-water semi-submersible drilling rig for harsh environment use worth approximately $574.49m (US$425m), an announcement revealed.

This follows the exercise of an option by Awilco pursuant to the earlier contract entered into between Keppel and Awilco for a similar rig, and which was announced by the Company in March 2018, according to an earlier announcement filed on the Singapore Exchange (SGX).

“As part of that transaction, Awilco has independent options to order up to another two similar rigs to be exercised in 2020 and 2021, respectively,” Keppel added.