Singapore’s Keppel Offshore & Marine has agreed to buy Cameron International’s offshore rig business for US$100 million, comprising of the LeTourneau jackup rig designs.
Keppel says the LeTourneau suite of jackup rig designs have been popular with certain market segments and have a proven track record of operating in a variety of environments.
This acquisition will not only see the shipbuilder add to its offerings in the highly competitive jackup rig market, but also be able to offer the LeTourneau rig designs through the sale of rig kits to shipyards, or deliver ready-to-drill rig solutions from Keppel yards worldwide.
The rig kits include jackup leg components, elevating units, jacking system and cantilever and skidding system. Support equipment such as cranes and anchor winches are also options in the rig kits. Keppel will also provide aftermarket services. With about 100 LeTourneau rigs currently operating around the world, many operators require servicing and repair of their rigs.
CEO of Keppel Offshore & Marine, Chow Yew Yuen says the firm is confident that the long-term fundamentals of the offshore rig market remain positive.
“With the current low oil price, we have seen a slowdown in newbuild rig orders. Rig owners are instead looking at repairing and upgrading their current fleet. We believe that we can make best use of our after sales service infrastructure to service rigs of both the LeTourneau, as well as Keppel FELS designs,” Chow says.
Last week oil field service company, Schlumberger entered an agreement to acquire Cameron in a $14.8 billion stock and cash deal. In January, Cameron completed the sale of its centrifugal compression business to Ingersoll Rand for approximately $850 million. In June 2014, the firm sold its reciprocating compression business to GE for about $550 million.
Image: LETOURNEAU Workhorse jackup rig design / Cameron.
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