Keppel O&M inks bareboat contracts worth $135m

Under the deal, the company will deploy two KFELS B Class rigs to Saudi Arabia.

Keppel O&M, through its subsidiaries, inked bareboat contracts that are expected to generate them a revenue of about $135m.

Under the deal, the company will deploy two KFELS B Class rigs to Saudi Arabia and will be used by ADES Saudi Limited Company for five years commencing in 4Q 2022.

Keppel O&M said the two rigs and their respective bareboat charter agreements are part of its legacy rigs and will be transferred to Asset Coiii that is majority-owned by external investors on legal completion.

“These charters attest to the good demand for Keppel O&M’s proven state-of-the-art KFELS B Class rig in markets such as the Middle East where our proprietary design has established an unrivaled operational track record," Chris Ong, CEO of Keppel O&M, said.

“We continue to see strong demand for our rigs, and are actively pursuing more charters, as well as sales opportunities. Our early success at securing new bareboat charters will not only enable us to start generating revenue and cash flows from the legacy assets but also, improve the overall marketability of our rigs as we build up their operational track records,”  Ong added.

The contracts, however,  are not "expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year."