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Keppel delivers jack-up rig on sale and leaseback deal to Grupo R

Singapore’s Keppel FELS has delivered its newly-built jack-up rig to Mexico’s Grupo R on a sale and leaseback deal.

Keppel FELS, wholly subsidiary of Keppel Offshore & Marine (Keppel O&M), will purchase the jack-up rig Cantarell IV from Grupo R for $179m, which is equivalent to the balance contract value of the rig.

Cantarell IV will then be leased back to Grupo R on a bareboat charter at “competitive day rates over five years”, according to Keppel.
Under the bareboat charter, Grupo R has the right to purchase the rig at pre-agreed prices during the term of the charter. After the fifth year,Keppel FELS may put the rig to Grupo R at a pre-agreed price.

The jack-up rig Cantarell IV will be deployed to work in offshore Mexico under an integrated drilling contract for offshore wells secured by IPC, parent company of Grupo R, with Pemex, which will commence in early May 2019.

The fields where the rig will operate is expected to produce up to 210,000 bpd of crude and 350 million mmcfd of natural gas by 2020.
“Keppel FELS will be able to deliver the rig at full value; Grupo R will be able to lease the rig to begin operations in Mexico; and Keppel O&M will benefit from acquiring a quality rig at attractive commercial terms while generating regular and predictable cash flows from the charter at a good rate of return,” explained Chris Ong, ceo of Keppel O&M.

“As Mexico develops its oil and gas reserves, more high specification rigs such as the KFELS B Class rigs will be needed. We have previously delivered 10 such rigs to Mexico which have delivered robust, efficient and economical performances,” Ong continued.

Read more: Scrubber and LNG contracts boost Keppel Offshore & Marine's orderbook in 2018

Grupo R is currently operating two Keppel FELS jack-up rigs – Cantarell I and Cantarell II – for Pemex in Mexico since August 2016 under a seven-year charter.

The Cantarell IV jack-up rig is designed to operate in water depths of up to 400 feet and drill to depths of 30,000 feet. It is equipped with an advanced and fully automated high capacity rack, pinion jacking system, self-positioning fixation system, and also has accommodation for 150 persons.

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