Keppel delivers jackup rig to Grupo R

A Keppel FELS jackup drilling rig (Photo: Keppel)

Keppel Offshore and Marine (Keppel O&M), through its wholly-owned subsidiary Keppel FELS, has delivered the jackup rig Cantarell III to a wholly-owned subsidiary of Mexico’s Grupo R.

As part of the deal, Grupo R has entered into a sale and leaseback arrangement for the rig with a wholly-owned subsidiary of Keppel O&M.

Keppel O&M will purchase the rig from Grupo R for about US$190 million which is the balance contract value of the rig. Keppel O&M had received 20 per cent down payment of the original contract value for Cantarell III when the contract was signed in 2013.

Cantarell III will be leased back to Grupo R on a bareboat charter at competitive day rates over 10 years, and will be deployed to work in offshore Mexico on a charter which will commence in the first quarter of 2020. Under the bareboat charter, Grupo R has the right to purchase the rig at pre-agreed prices during the term of the bareboat charter.

After the fifth year, Keppel O&M may, at its discretion, put the rig to Grupo R at a pre-agreed price.

Cantarel III has accommodations for up to 150 people and is designed to operate in water depths of up to 120 metres and drill to depths of 9,000 metres.

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