Keppel gets repeat rig order from Awilco for around US$425 million

Keppel Offshore & Marine’s wholly owned subsidiary Keppel FELS received a repeat order valued around US$425 million from Awilco Drilling for a mid-water semisubmersible drilling rig for harsh environment use, Keppel said in a filing to SGX after the market close on Friday.

That was after Awilco exercised an option under the previous contract for a similar rig, the filing said, adding Awilco has independent options to order up to two more similar rigs, which can be exercised in 2020 and 2021.

The latest rig order, which will be built to Moss Maritime’s CS60 ECO MW design, is scheduled to be completed in the first quarter of 2022, Keppel said.

Like the first rig, this one will be outfitted water depths of up to 1,500 meters and for the harshest environments of North West Europe, including the Barents Sea, and it will have a low environmental footprint, the filing said.

“Work on the first rig is progressing well and we will be able to benefit from economies of scale and cost efficiencies from undertaking a repeat project,” Tan Leong Peng, executive director for offshore at Keppel O&M, said in the statement. “For this second rig, we will be able to
leverage the engineering and construction process of the first rig to further improve productivity.”

Sigurd E. Thorvildsen, chairman at Awilco, said the company exercised the option because it was seeing growing demand for mid-water, harsh environment rigs in the region.

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