Keppel RigCo and Seatrium sign $500 million contract to finish four offshore rigs

Keppel’s wholly owned subsidiary RigCo and Seatrium will jointly complete construction on four offshore rigs under a contract exceeding S$500 million, financed by RigCo’s existing cash. The fleet includes a premium seventh-generation drillship, a harsh-environment jackup, and two mid-water semisubmersibles designed for the tough conditions of north-west Europe. The drillship is expected in 2027 and the jackup in 2028, aligning with charter opportunities and future monetisation via the Keppel Offshore Fund, which Apollo co-invests in.

Plans for the other two rigs are still being evaluated. Both companies say the offshore rig market is rebounding after a decade of limited newbuilds, driven by higher utilisation, an aging global fleet, supply constraints and energy-security concerns. Cindy Lim highlighted the anticipated rise in demand for deepwater and harsh-environment rigs over the coming years. Share prices moved modestly after the announcement, with Seatrium up 1.7% and Keppel down 0.5%.