Business

Keppel O&M bags $560m drilling-rig contract

Awilco Drilling confirmed Keppel Offshore & Marine (O&M) has been awarded a US$425 million (S$560 million) contract for the construction of a mid-water, harsh-environment semi-submersible drilling rig.

The contract awarded to the offshore and marine arm of Keppel Corporation called upon the yard group to complete the rig construction in the first quarter of 2021.

INDEPENDENT OPTIONS

Keppel O&M has also extended Awilco independent options towards the construction of three other similar newbuild rigs. These options are to be exercised within 12, 24 and 36 months, respectively.

Awilco has moved to confirm the newbuild order after completing a private placement intended to fund the construction. It raised gross proceeds of US$65 million.

Awilco chief executive officer Jon Oliver Bryce said the order was placed with Keppel O&M on the back of growing activity in the mid-water, harsh-environment rig segment. Fleet utilisation for such rigs has been increasing.

Keppel O&M's rig-building unit Keppel Fels was selected because it is able to offer Awilco "a value-adding, unique solution", he said.

"This newbuild rig will be purpose-designed with the latest technology, making it cost-effective for our customers," he added. - THE STRAITS TIMES

BUSINESS & FINANCE