Keppel in talks with Borr Drilling for rig sales

It confirmed a news report but said it hasn't set a price for the sale yet.

Keppel Corporation Limited confirmed a newspaper report on 19 January that discussions are ongoing with Borr Drilling Limited (Borr Drilling) for the possible sale of jack-up rigs that are being built by Keppel FELS Limited (Keppel FELS).

Keppel said in an announcement, "The details and terms of any agreement relating to such sale and purchase have not yet been finalized and are still subject to ongoing negotiations and discussions, and no definitive agreement has been entered into by the relevant parties yet."

Keppel also said there is no agreement involving the company on any potential sale-and-leaseback financing agreement with Grupo R. for jack-up rigs.

OCBC Investment Research analyst Low Pei Han said if the deal is successful, this is positive on Keppel’s cash flows and will improve its balance sheet.

Borr Drilling previously bought Sembcorp Marine's nine rigs in October last year. Moreover, it bought nine Pacific Class 400 jack-up drilling rigs for US$1.3b plus a market-based fee calculated based on an uplift in value of the rigs sold.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia