The market for jack-up drilling rigs is picking up well, thanks in large part to high demand in the Middle East.
As a result, Keppel Offshore & Marine in Singapore is now renting out two more brand new jack-up rigs that have been stranded at the yard after they were terminated by the original buyer.
According to a report from Keppel, the rigs are leased to an unnamed rig company in the Middle East for a period of three years, starting in the fourth quarter of this year.
The contract value, including options and modification work to be done on the rigs, is expected to be up to 120 million Singapore dollars, equivalent to around 840 million kroner.
The rigs are of the KFELS B Class type and are rented out bareboat – without crew.
– Reflects a improving market
The contracts come just a couple of weeks after Keppel rented out two other new buildings for which no owner had been found. These rigs were leased to ADES for five years.
– The chartering agreements we have recently entered into reflect a improving market sentiment, says CEO Chris Ong of Keppel O&M in the report.
– With increasing utilization for the jack-up rigs, we notice increased demand for rig chartering and increased buying interest. (..) As we secure more charter contracts, these rigs will become increasingly valuable for both rig operators and potential investors, he adds.
–
