Keppel Acquires Cameron’s Jack-Up Rig Business

Singapore’s Keppel Offshore & Marine, the world’s largest rig builder, says it has entered into an settlement for the acquisition of Houston-headquartered Cameron International Corporation’s offshore rigs enterprise for $100 million.

The acquisition, which was made via Keppel’s wholly owned subsidiary Keppel Offshore & Marine USA, contains Cameron’s trademarked LETOURNEAU jack-up rig designs, rig equipment enterprise and aftermarket providers.

The LETOURNEAU suite of jackup rig designs are established designs which have been well-liked with sure market segments and have a confirmed monitor file of working in a wide range of environments.

Keppel says the acquisition will add to its choices within the jackup rig market by giving it the flexibility to supply LETOURNEAU designs and rig kits to shipyards and ship ready-to-drill options from Keppel years worldwide. The designs Keppel is buying embrace the LETOURNEAU Super 116E, WORKHORSE, Super Gorilla XL and Jaguar. The rig kits embrace jackup leg parts, elevating items/jacking system and cantilever/skidding system, in addition to help tools.

Another side of the enterprise is the supply of aftermarket providers, reminiscent of servicing and restore for the roughly 100 LETOURNEAU rigs presently working all over the world. Besides repairs, upgrades and modifications, jackups are required to bear five-year Class recertification particular periodic surveys.

Keppel itself has already constructed 16 rigs primarily based on LETOURNEAU designs.

“This is an opportune and strategic acquisition as it will not only broaden our suite of jackup rig design offerings in this highly competitive sector, but also provide us with enhanced capabilities to service customers through the provision of expanded aftermarket sales and services,” commented Mr Chow Yew Yuen, CEO of Keppel O&M. “We are confident that the long-term fundamentals of the offshore rig market remain positive.”

Commenting on the latest crash in oil costs and its impression on the offshore rig market, Yuen added:

“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. These are popular designs operating in many of the world’s offshore oil fields and rig owners can now utilize our global network of yards to service and maintain their rig assets cost-effectively.”