Keppel Delivers Grupo R Rig

Offshore rig specialist Keppel FELS has delivered an outsized jackup rig to energy conglomerate Grupo R.

The giant Cantarell IV rig was delivered on a sale and leaseback arrangement, with Grupo R set to take the rig a bareboat charter at competitive day rates over five years. FELS Asset will purchase the rig from Grupo R for US$179 million, equivalent to the balance contract value of the rig.

"This transaction demonstrates how we are able to leverage the strengths of Keppel O&M to achieve win-win solutions for all stakeholders,” said Chris Ong, CEO of Keppel O&M.

 

Offshore Mexico Launches in May

Under the terms of the deal, Grupo R has the right to purchase the rig at pre-agreed prices during the term of the bareboat charter. The Cantarell IV will be deployed directly to work in offshore Mexico, under an integrated drilling contract for offshore wells secured by IPC with Pemex, which will commence in early May 2019.

"Our two jackups from Keppel FELS, Cantarell I and II have been achieving exceptional performances ever since they started working for Pemex in Mexico ... This is a result of having the right rig design, the choice yard to deliver a quality rig and our unmatched operating expertise. I am confident Cantarell IV will break new records in Mexico as well,” said Jose Ramiro Garza, CEO of Grupo R.

“Keppel FELS will be able to deliver the rig at full value; Grupo R will be able to lease the rig to begin operations in Mexico; and Keppel O&M will benefit from acquiring a quality rig at attractive commercial terms while generating regular and predictable cash flows from the charter at a good rate of return,” Ong added.

 

Expanding Orderbook

Based in Jurong in the south-west of Singapore, Keppel FELS is a subsidiary of  Keppel Corp., a specialist in the design, build and transport of high-performance mobile offshore rigs.

The Cantarell IV sale follows announcements by the group in late 2018 that it had secured contracts worth a combined value of about S$300 million. The new projects include design and construction of an ice-class LNG bunker vessel, refurbishment of a floating production storage and offloading vessel (FPSO), and 65 scrubber retrofit projects.

Photo: Cantarell IV. Credit: Grupo R