Keppel Closes Deal with Borr Drilling
Keppel FELS Limited, a wholly-owned subsidiary of Keppel Offshore & Marine Ltd (KOM), had entered into a Heads of Agreement with Borr Drilling Limited of Bermuda.
Keppel FELS has now signed the relevant definitive agreements with Borr Drilling to novate the construction contracts of the five jackup rigs currently being built by Keppel FELS for Transocean Ltd to Borr Drilling.
Under the terms of the agreements, Borr Drilling will take over the contracts of the five jackup rigs from Transocean and undertake the remaining payment installments to Keppel (KPELF) FELS. The price for each rig, which includes the milestone payments already made by Transocean, is $216 million, compared to the original contract price of $219 million. Borr Drilling will make a down payment of $275 million within two weeks.
Based on the agreements signed, the first three rigs will now be delivered in 1Q 2018, 2Q 2018 and 2Q 2019 respectively, while the remaining two rigs will be delivered in 2020.
