Keppel Signs $820 Million Rig Deal

Keppel designed jack-up rigs. File photo via Keppel FELS

Keppel FELS, a wholly-owned subsidiary of Keppel Offshore & Marine, said Thursday that it has secured contracts from Mexican drilling company, Grupo R, to build four jackup rigs worth US$820 million.

The jackup rigs will be built to Keppel’s proprietary KFELS B Class design and are scheduled for delivery starting in 2Q 2015 to 4Q 2015.

Mr Wong Kok Seng, Managing Director (Offshore) of Keppel O&M and Managing Director of Keppel FELS, said, “Mexico is an important market for us and we are glad that Mexican operators have chosen the KFELS B Class as their preferred rig design and Keppel as the preferred shipyard. We look forward to support Grupo R as they expand their fleet of premium jackup rigs for the Mexican market, with safe, on time and on budget deliveries.”

Customized to Grupo R’s requirements, the rigs will be able to operate in water depths of up to 400 feet and drill to depths of 30,000 feet.

PEMEX, the Mexican national oil company has announced investment plans of US$25.3 billion for 2013, of which US$20 billion will be targeted at upstream activities. On a visit to Keppel FELS on 30 January 2013, Mr Emilio Lozoya Austin, CEO of PEMEX, said that the company is embarking on its most ambitious drilling program in decades and plans to add between eight and 12 offshore platforms to its fleet.

Mr Ramiro Garza V., CEO of Grupo R said, “PEMEX have indicated their aim to operate the biggest fleet of jackup rigs in the world and Grupo R is well positioned to support them with four premium jackup rigs. We chose the KFELS B Class jackup design for our first shallow water rigs because of their high specifications and their proven success for PEMEX. In choosing Keppel FELS, we are also partnering a shipyard which is able to meet the needs of our customers in terms of cost-effectiveness, time, technology, quality, and safety with environmental considerations. This will further enhance our capabilities as the leader in Mexico’s onshore and offshore drilling industry.”

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