The LOI includes 10 rigs in Transocean’s fleet and 5 rigs currently under construction at Keppel FELS, a wholly-owned subsidiary of Keppel Offshore & Marine.
Meanwhile, Keppel FELS signed heads of agreement with Borr Drilling whereby the construction contracts for the five jackup rigs being built for Transocean will be transferred to Borr Drilling.
As per this agreement, Borr Drilling will take over the contracts and will make remaining payment installments to Keppel FELS.
The first three of the five KFELS Super B Class jackup rigs are planned to be delivered between 2017 and 2018 followed by the remaining two rigs in 2020.
Designed to operate in 400ft water depth and drill to 35,000ft, the KFELS Super B Class rigs will be equipped to allow drilling and the preparation of drill pipes to take place at the same time.
Borr Drilling said in a statement: “A deposit has in line with what has been agreed between the parties been paid from Borr to Transocean.”
The transaction with Transocean is expected to be completed before the end of May 2017 and is subject to the parties executing definitive agreements and satisfying formal closing conditions.
For the transaction, the Borr Drilling said it has secured financing through a private placement of equity securities.
Upon completion of deal, Transocean will have a fleet of about 50 larger rigs which are designed for exploration in deeper waters, reported Reuters.
Transocean also owns 30 ultra-deepwater units as well as seven harsh-environment rigs, three deepwater rigs and six mid-water units.
Image: Keppel FELS is constructing five rigs for Transocean. Photo: courtesy of Keppel Corporation Limited.
