SHIPPING & MARINE | Staff Reporter, Singapore

Keppel O&M unit to buy rig from Mexican driller for US$179m via sale and leaseback

Keppel has previously delivered ten such rigs to Mexico.

Keppel O&M subsidiary FELS Asset Co Pte Ltd. will purchase a jackup rig from Mexican driller Grupo R for US$179m ($242m) in a sale and leaseback agreement.

As part of the deal, Cantarell IV will be leased back to Grupo R on a bareboat charter at competitive day rates over five years.

After the fifth year, FELS Asset may, at its discretion, put the rig to Grupo R at a pre-agreed price.

Cantarell IV will be deployed directly to work in offshore Mexico, under an integrated drilling contract for offshore wells secured by Grupo R’s parent company IPC, which will commence in early May 2019.

"As Mexico develops its oil and gas reserves, more high specification rigs such as the KFELS B Class rigs will be needed. We have previously delivered 10 such rigs to Mexico," Chris Ong, CEO of Keppel O&M said.

"The fields where the rig will operate is expected to produce up to 210,000 bpd of crude and 350 million mmcfd of natural gas by 2020, resulting in more opportunities for the rig to be deployed in future,” said Jose Ramiro Garza, CEO of Grupo R.

Photo credit: Keppel O&M website

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