Keppel has begun preparing its unfinished drilling rigs for operation in order to take advantage of improved market conditions.

History and Current Situation

For decades, Keppel held leading positions in the design and construction of drilling rigs for both shallow and deepwater operations. In early 2021, the company started a phased exit from this line of business. As a result of merging Keppel’s offshore and marine divisions with Sembcorp Marine, the company Seatrium was established. However, Keppel retained several unfinished drilling rigs that had been abandoned by their original customers.

Currently, Keppel has 13 such rigs on its books: six jack-up platforms, one auxiliary unit, one drilling platform, and several semi-submersible rigs.

Strategy and Plans

Keppel plans to put these rigs into operation. The completed jack-up platforms have already been deployed, while the company is taking a wait-and-see approach with the remaining units. According to available information, seven rigs are at various stages of readiness, mainly semi-submersible platforms and one drilling platform.

Of the six completed jack-up platforms, five have already been leased out under bareboat contracts, and options for the sixth are currently being explored.

Market Dynamics

The company notes growing interest in its older rigs and jack-up platforms that are already leased out. Negotiations are also underway to extend existing contracts, with proposed rates approximately 10–15% higher than previous levels. In light of this, Keppel has started preparing its unfinished rigs for deployment.

Once the rigs are leased under bareboat contracts and begin generating cash flow, they become more attractive to investors.

Technical Details

Among the unfinished assets, the Can Do drilling platform, developed by Keppel Fels, stands out. It measures 794 feet in length and 138 feet in width, and is designed to operate at depths of up to 12,000 feet. According to available data, the platform is mechanically complete.

Two of the unfinished semi-submersible platforms are Moss CS60 ECO MW models, built for harsh marine environments such as the North Sea. These units are known as the “Awilco semi-subs”—Nordic Spring and Nordic Winter—originally ordered by Awilco Drilling.

Identifying the other unfinished Keppel semi-submersible platforms is more challenging; market data suggests these may be former Brazilian units.

Outlook

Keppel has not specified exact timelines for completing work on the unfinished rigs, continuing to assess market opportunities for their eventual deployment.