The Best Strategy To Use For Transocean Completes Sale of Rigs to Shelf Drilling

Keppel O&M had actually received 20% deposit of the initial agreement worth for Cantarell III when the agreement was checked in 2013. Cantarell III will be rented back to Grupo R on a bareboat charter at competitive day rates over 10 years, and will be deployed to work in offshore Mexico on a charter which will start in 1Q 2020.

Under the bareboat charter, Grupo R can acquire the rig at pre-agreed costs throughout the term of the bareboat charter. After the fifth year, Keppel O&M may, at its discretion, put the rig to Grupo R at a pre-agreed cost. Mr Tan Leong Peng, Executive Director (New Develops) of Keppel O&M said, "We are delighted to enter into an equally useful arrangement which will allow Grupo R to deploy another high-performance rig for its operations in Mexico.

As Mexico seeks to increase oil production, need for jackup rigs has been increasing. "Our first sale and leaseback plan with Grupo R on the Cantarell IV has actually worked well. Cantarell IV, which was warm stacked in our backyard from 2016 to the start of 2019, had the ability to go straight to the field upon delivery and attain 99% uptime in its operations.

We anticipate Cantarell III to similarly serve Grupo R well upon deployment in Mexico." The KFELS B Class design is the industry criteria for jackup rigs. It has shown its toughness and effectiveness in numerous fields around the world, and more than 10 KFELS B Class units have actually been provided to Mexico.

Cantarell III is equipped with Keppel's proprietary Rig, Care Solution - a suite of digital services to support the rig's lifecycle needs, considerably increasing uptime and safety while reducing upkeep expenses. Together with the Cantarell IV jackup rig, which was delivered by Keppel to Grupo R earlier this year, they are the industry's very first drilling rigs with Smart Notations.

Mr Jose Ramiro Garza, CEO of Grupo R added, "We are confident of the long-term outlook of the Mexican rig market with Pemex and worldwide oil companies looking for additional jackup rigs to support the country's target to increase Mexicos oil and gas production. As top drives for sale leading rig operator in Mexico, we are well positioned to satisfy their requirements with high quality rigs from Keppel such as the Cantarell III.