Singapore's Seatrium has secured an agreement with Keppel's subsidiary RigCo to complete construction work on four offshore drilling rigs under an existing master services arrangement, with the total estimated contract value exceeding $390 million (S$500 million).
The four rigs comprise a premium seventh-generation drillship, a harsh environment jack-up and two mid-water semisubmersibles designed for operations in the harsh conditions of Northwest Europe.
The construction work will be funded by existing cash retained in RigCo, a wholly-owned subsidiary of Keppel.
The drillship is expected to be delivered to RigCo in 2027, followed by the harsh environment jack-up in 2028, positioning both units for charter opportunities and monetisation through the Keppel Offshore Fund.
Construction plans for the remaining two semisubmersibles are still being assessed.
The agreement comes as offshore drilling rig market conditions improve following more than a decade of limited newbuild activity and the progressive retirement of older units.
Higher utilization rates, an ageing global drilling fleet and structural supply constraints are supporting the outlook for offshore rig demand, according to the companies.
"The demand for deepwater and harsh environment rigs is expected to increase over the next several years, providing conducive conditions for new, long-term charters of premium rigs. RigCo has been working closely with customers on their requirements amid the tightening market for advanced offshore rigs," said Cindy Lim, Chief Executive Officer, Infrastructure of Keppel and Non-Executive Director of RigCo.
The resumption of construction forms part of Keppel's programme, announced in July 2026, to progressively monetise up to 10 legacy offshore rigs through the Keppel Offshore Fund, managed by Keppel and co-invested with Apollo as a limited partner.
RigCo currently owns six modern jack-up rigs that have been delivered and leased to customers since 2022, alongside the four uncompleted drilling units covered by the latest agreement.