Construction
In a deal worth over S$500 million ($391 million), Keppel’s RigCo has enlisted Seatrium to complete the construction of four premium offshore rigs.
As ageing global fleets and heightened energy security concerns drive renewed demand for offshore drilling, RigCo — a wholly owned subsidiary of Keppel — has partnered with Singapore’s Seatrium to complete the construction of four legacy offshore rigs.
This initiative positions RigCo to capitalise on a tightening offshore drilling market, while paving the way for potential asset monetisation through the Keppel Offshore Fund.
Under an existing master services arrangement, the two companies will collaborate on completing construction work on four offshore rigs owned by Keppel’s subsidiary. These comprise a premium seventh-generation drillship, a harsh environment jack-up and two mid-water semi-submersibles suited to working in the harshest environments in north-west Europe.
The estimated total contract value for the construction of all four rigs, which exceeds S$500 million, will be funded by RigCo’s existing retained cash. The company has six modern jack-ups that have been delivered and leased to customers since 2022. The company’s remaining uncompleted assets include a harsh environment jack-up, a premium drillship and two harsh environment semi-submersibles.
The drillship and the harsh environment jack-up are expected to be delivered to Keppel’s subsidiary in 2027 and 2028 respectively. This positions them for charters and supports monetisation through the Keppel Offshore Fund. Construction plans for the remaining two rigs are currently being assessed.
