Celebration as ARABDRILL110, considered one of two Keppel O&M legacy rigs on constitution to Arabian Drilling Company is handed over.
Singapore’s Keppel Offshore & Marine (Keppel O&M) has accomplished the modification works for the 4 legacy jack-up rigs which might be be deployed on bareboat charters in Saudi Arabia. The rigs are being chartered in pairs to Arabian Drilling Company (ADC) and ADES Saudi Limited Company (ADES) respectively and are anticipated generate a complete constitution income of about SGD 250 million(about US$176 million) over three to 5 years.
As legacy rigs, the 4 KFELS Class B rigs and their bareboat constitution agreements might be transferred to Asset Co, which is majority-owned by exterior traders, on completion of the proposed mixture of Keppel O&M and Sembcorp Marine.
The rigs chartered to ADC, ARABDRILL110 and ARABDRILL 120, had been handed over on the shipyard yesterday with Abdullah Al Mahdi, Ambassador of Saudi Arabia to Singapore, because the Guest-of-Honor. The rigs are on bareboat constitution contracts for 3 years with choices for a yr’s extension and might be deployed in Saudi Arabia to work for Saudi Aramco, the nation’s nationwide oil firm.
The rigs for ADES, ADMARINE 683 and ADMARINE 684, which had their modification works accomplished earlier this month, have been chartered for 5 years and are additionally deployed to Saudi Arabia for Saudi Aramco.
Built to Keppel O&M’s proprietary KFELS B Class design, the 4 fashionable high-specification rigs are in a position to function in water depths of as much as 400 toes and drill to 30,000 toes deep. In preparation for his or her charters in Saudi Arabia, these rigs have been additional personalized to work for Saudi Aramco.
Tan Leong Peng, managing director (new builds) at Keppel O&M mentioned, “We are happy that 4 of our rig belongings are being put to productive work and can quickly generate recurring earnings as they embark on their constitution contracts with our valued clients ADC and ADES. The mission groups at Keppel O&M have labored onerous to expedite the rigs’ modification works, enabling these belongings to begin their charters on schedule in Saudi Arabia.
“As utilization and day rates continue to rise, we are seeing demand for modern, high specification jack-up rigs grow. Riding on this growing demand, all our legacy KFELS B Class rigs have been contracted. Operationally ready rigs with good track records and stable cash flows are attractive assets that will enjoy a strong advantage with operators and investors. We are confident that our customers will appreciate the strong value proposition that Keppel’s high quality and cost-effective rig assets provide.”
