Keppel Offshore & Marine has confirmed the sale of five jack-up drilling rigs to Borr Drilling for around $475m.
Borr Drilling will pay a first instalment of $288m within 20 business days of the effective date of the signing of the master agreement.
The remaining amounts are payable within five years from the respective delivery dates of each individual rig, on a seller’s credit with interest at market rates.
The rigs are scheduled to be delivered progressively from late 2019 to the fourth quarter of 2020, with one rig to be delivered in 2019 and four rigs in 2020.
Keppel said the master agreement will become effective upon the satisfaction of certain conditions, including Borr Drilling raising sufficient funds.
On Tuesday Borr Drilling announced plans for its first convertible offering in capital markets to fund the acquisition of five rigs from an unnamed Asian shipyard.
The Oslo-listed Borr is looking to sell $350m in principal amount of the convertibles, which will have a five-year tenor.
“The agreement with Borr Drilling demonstrates that rig owners continue to look for reliable, high quality rigs,” said Keppel O&M chief executive Chris Ong.
“This is a win-win agreement for all parties and enables Keppel O&M to further improve our cashflow, minimise the holding risks of the projects, and clear several of the deferred orders.”
Borr Drilling chief executive Svend Anton Maier, added: “This is an opportune time for us to grow our fleet of highly capable jack-up rigs as the market is showing signs of recovery from the bottom of the business cycle.
“We are pleased to be getting another five high quality jack-up rigs from Keppel FELS on top of the five we acquired earlier.
“Our partnership with Keppel is crucial as it enables us to provide the market with the latest in jack-up rig technology, safety and operability.”
Keppel confirmed in January this year that itwais in talks with Borr Drilling about the sale of several unwanted jack-up drilling rigs.
