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Keppel delivers jackup rig to Grupo R on sale and leaseback deal

An offshore drilling rig (Image credit: Gruppor)

JAKARTA ( – Keppel FELS, a wholly-owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M) has delivered the jackup rig, Cantarell IV, to Grupo R., a Mexican drilling company.

As part of the deal, Grupo R has entered into a sale and leaseback agreement with FELS Asset Co Pte. Ltd. (FELS Asset), a wholly-owned subsidiary of Keppel O&M, the company said in a statement.

FELS Asset will purchase the rig from Grupo R for US$179 million which is equivalent to the balance contract value of the rig. Cantarell IV will be leased back to Grupo R on a bareboat charter at competitive day rates over five years. IPC, the parent company of Grupo R, will provide a Parent Company Guarantee on Grupo R’s charter payment obligations.

Under the bareboat charter, Grupo R has the right to purchase the rig at pre-agreed prices during the term of the bareboat charter. After the fifth year, FELS Asset may, at its discretion, put the rig to Grupo R at a pre-agreed price.

Cantarell IV will be deployed directly to work in offshore Mexico, under an integrated drilling contract for offshore wells secured by IPC with Pemex, which will commence in early May 2019.

Chris Ong, CEO of Keppel O&M  said as Mexico develops its oil and gas reserves, more high specification rigs such as the KFELS B Class rigs will be needed. The company has previously delivered 10 such rigs to Mexico which have delivered robust, efficient and economical performances.

Grupo R is well-established as a driller in Mexico, with excellent uptimes and a strong track record of success with difficult wells. The two jackup rigs Keppel FELS delivered to Grupo R in 2016, Cantarell I and Cantarell II, have been drilling for Pemex in Mexico since August 2016 under a seven year charter.

Jose Ramiro Garza, CEO of Grupo R added, “We are pleased to be able to partner Keppel to bring this rig to work for Pemex in Mexico. 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, resulting in more opportunities for the rig to be deployed in future. As a leading rig operator in Mexico, we are well positioned to meet the country’s drilling demands. (*)

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