Admarine 683 (formerly FELS Asset Co 5 Pte. Ltd)

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escveritas
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Admarine 683 (formerly FELS Asset Co 5 Pte. Ltd)

Unread post by escveritas »

09 May 2022
Keppel O&M secures agreements worth about S$135 million for the utilisation of two KFELS B Class jackup rigs

Keppel Offshore & Marine Ltd (Keppel O&M) has through its wholly-owned subsidiaries signed agreements for the utilisation of two KFELS B Class rigs to be deployed in Saudi Arabia.

These bareboat contracts are expected to generate revenue of about S$135 million for Keppel O&M including modification works to prepare them for deployment.The two rigs will be chartered by ADES Saudi Limited Company for a period of five years commencing in 4Q 2022.

Mr Chris Ong, CEO of Keppel O&M, said, “We are pleased to secure bareboat charter contracts for two of our jackup rigs, riding on improving conditions in the oil and gas market.

“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 unrivalled operational track record. With superior drilling efficiency and proven high performance, our modern KFELS B Class rigs are an economical and attractive proposition for operators and oil companies looking to ramp up exploration activities.”

According to a report by Clarksons Research published in April 2022, rig markets have continued to tighten in 2022, with overall utilisation now at its highest level since 2015 and dayrates rising noticeably for jackups and floaters. The outlook for the jackup market is optimistic, with demand expected to increase across 2022-23, underpinned by strong activity of national oil companies.

“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,” Mr Ong said.

Keppel O&M had on 13 April 2022[ii] announced the termination of newbuild rig contracts with certain customers, which will be used in turn to fulfil the latest bareboat charter contracts.

As part of the definitive agreements Keppel Corporation has signed in connection with the proposed combination of Keppel O&M and Sembcorp Marine, these two rigs and their bareboat charter agreements are part of Keppel O&M’s legacy rigs and will be transferred to Asset Co[iii] that is majority-owned by external investors on legal completion.

The above bareboat charter contracts 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.
escveritas
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Re: FELS Asset Co 5 Pte. Ltd

Unread post by escveritas »

14 Oct 2022
Keppel to commence charters for four rigs assets in Saudi Arabia

Keppel Corporation Limited is pleased to announce that its wholly-owned subsidiary, Keppel Offshore & Marine (Keppel O&M)[1], has completed the modification works for four KFELS B Class jackup rigs which will be deployed on bareboat charters in Saudi Arabia this month. The rigs are being chartered in pairs to Arabian Drilling Company (ADC) and ADES Saudi Limited Company (ADES) respectively and are expected generate a total charter revenue of about S$250 million over three to five years.

These four rigs and their bareboat charter agreements[2] form part of Keppel O&M’s legacy rigs and will be transferred to Asset Co, which is majority-owned by external investors, upon completion of the proposed combination of Keppel O&M and Sembcorp Marine[3].

The rigs chartered to ADC, ARABDRILL110 and ARABDRILL 120, were handed over on 13 October at the shipyard with H.E. Abdullah AlMahdi, Ambassador of Saudi Arabia to Singapore, as the Guest -of-Honour. The rigs are on bareboat charter contracts for three years with options for a year’s extension and will be deployed in Saudi Arabia to work for Saudi Aramco, the country’s national oil company.

The rigs for ADES, ADMARINE 683 and ADMARINE 684, which had their modification works completed earlier this month, have been chartered for five years and are also deployed to Saudi Arabia for Saudi Aramco.

Built to Keppel O&M’s proprietary KFELS B Class design, the four modern high-specification rigs are able to operate in water depths of up to 400 feet and drill to 30,000 feet deep. In preparation for their charters in Saudi Arabia, these rigs have been further customised to work for Saudi Aramco.

Mr Tan Leong Peng, Managing Director (New Builds) of Keppel O&M said, “We are pleased that four of our rig assets are being put to productive work and will soon generate recurring income as they embark on their charter contracts with our valued customers ADC and ADES. The project teams at Keppel O&M have worked hard to expedite the rigs’ modification works, enabling these assets to start their charters on schedule in Saudi Arabia.

“As utilisation and day rates continue to rise, we are seeing demand for modern, high specification jackup rigs grow. Riding on this growing demand, all our legacy KFELS B Class rigs have been contracted. Operationally ready rigs with good track records and stable cash flows are attractive assets that will enjoy a strong advantage with operators and investors. We are confident that our customers will appreciate the strong value proposition that Keppel’s high quality and cost-effective rig assets provide.”
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