Singapore-headquartered Keppel Offshore & Marine (Keppel O&M) has acquired Cameron’s offshore rigs business for USD100 million.
The stock and asset purchase agreement was signed by Keppel O&M’s wholly owned subsidiary, Keppel Offshore & Marine USA with Cameron International which includes Letourneau jackup rig designs, rig kit and aftermarket service businesses.
According to Keppel’s corporate press release, the Letourneau jackup rig designs have been popular with certain market segments and possess a proven track record of operating in a variety of environments.
The new acquisition helps Keppel to enhance its capabilities with the additions of product mix from the jackup rig designs of Letourneau, comprising of Super 116E, Workhorse, Super Gorilla XL and Jaguar.
Moreover, Keppel O&M will be able to provide customers the Letourneau rig designs through the sale of rig kits to shipyards, or deliver ready-to-drill rig solutions from the Keppel yards worldwide. The rig kits include jackup leg components, elevating units/jacking system and cantilever/skidding system. Support equipment such as cranes and anchor winches are also options in the rig kits.
Meanwhile, the acquisition also enhanced Keppel O&M’s provision of the aftermarket services. As of now, there are around 100 Letourneau rigs operating around the world and these jack up operators need servicing, repair and maintenance for their rigs. Through the acquisition, Keppel O&M will be able to service them, providing repairs, upgrades and modifications for the rigs. Keppel O&M will also prepare the rigs to undergo five-year class recertification special periodic surveys.
Chow Yew Yuen, chief executive officer of Keppel O&M described the acquisition as “opportune and strategic” which help to expand the company’s suite of jackup designs as well as offering aftermarket sales and services to the extended client base.
“We believe that we can make best use of our after sales service infrastructure to service rigs of both the Letourneau as well as Keppel FELS designs. These are popular designs operating in many of the world’s offshore oil fields and rig owners can now utilise our global network of yards to service and maintain their rig assets cost-effectively”, commented Chow.