Borr, Keppel close Transocean jackup deal

Keppel FELS and Borr Drilling have agreed on construction contracts for the five jackup rigs currently being built by Keppel for Transocean, following this week’s earlier announcement of Transocean’s jackup fleet sale to Borr.

Image from Transocean.

The Singaporean shipbuilder said Borr Drilling, a Norwegian contractor, will take over the contracts from Transocean and undertake the remaining payment installments.

The price for each rig, which includes the milestone payments already made by Transocean, is US$216 million, compared to the original contract price of $219 million. Borr Drilling will make a down payment of $275 million within two weeks. 

The KFELS Super B Class jackup rigs, designed to operate in 400ft water depth and drill to 35,000ft, were originally slated for delivery between 2016 and 2017 but had been deferred by Transocean to 2020. 

However, based on the new agreements, the first three rigs will now be delivered in Q1 2018, Q2 2018, and Q3 2019 respectively, while the remaining two rigs is scheduled for delivery in 2020.

Last month, Keppel secured a $74.5 million (SGD $103 million) deal with another Norwegian contractor, Stolt-Nielsen Gas BV, to build two liquefied natural gas (LNG) carrier vessels by Q2 and Q3 2019, respectively.

Each vessel will have a capacity of 7500 cu m, and come equipped with engines that can run on both diesel and LNG. The carriers will have a class notation for bunkering which adds to their versatility to not only transport but also provide LNG bunkering services if required.

Read more:

Transocean completes jackup sell to Borr

Transocean delays five newbuilds to 2020

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