Singapore’s Keppel recently announced that its AD110 jack-up drilling rig has been secured for a five-year bareboat charter extension by the Saudi drilling contractor, Arabian Drilling. The extension agreement was signed by RigCo Holding, a wholly-owned subsidiary of Keppel, and is valued at approximately US$51 million.
This contract serves as a direct extension of the existing lease agreement, covering the period from 2026 to 2030. The AD110 is currently operating offshore in Saudi Arabia; the client’s identity has not been disclosed.
The AD110 is one of the jack-up drilling rigs to be deployed to Saudi Arabia under a bareboat charter agreement in 2022. Keppel said the extension reflected continued demand for modern, high-specification drilling rigs in the Middle East.
The agreement comes as Keppel is monetizing its remaining offshore drilling assets through Keppel Offshore Fund (KOF).
On July 27 of this year, Keppel announced that it would progressively monetize up to 10 legacy drilling rigs through KOF. Specifically, in 2026, Keppel plans to sell 6 active drilling rigs to KOF via RigCo for a total consideration of approximately S$1.2 billion, with Keppel expected to receive about S$611 million in cash that same year. The AD110 rig—the subject of this contract renewal—is one of these 6 active rigs; the transaction remains subject to the fulfillment of certain conditions.
Between 2027 and 2028, Keppel will sell another four drilling rigs—currently under construction and at various stages of completion—to KOF, a transaction expected to generate approximately S$1.3 billion in proceeds for Keppel.
These four rigs are currently being completed by Seatrium; they include one seventh-generation drillship, one harsh-environment jack-up rig, and two mid-water semi-submersible rigs designed for the demanding sea conditions of Northwest Europe.
Keppel stated that it is seeking to extend and renew existing rig charters, with the aim of strengthening contractual cash flows and enhancing the value of these assets ahead of their divestment.