Keppel announces four-platform auction by Sete Brasil

4/22/2019

During Keppel Corp.’s first quarter earnings announcement on Thursday (18), the company’s CEO, Loh Chin Hua, said that Sete Brasil had recently convened an auction for two semi-submersible platforms under construction at the BrasFELS site in Brazil , and two drill ships under construction by Sembmarine, according to Seatrade.

 

A proposal was presented by Magni Partners, owned by the chairman of Borr Drilling, Tor Olav Troim, for all four assets. Keppel also presented a proposal for the two platforms at BrasFELS.

Asked why he is bidding for the platforms themselves, Loh said: “The offer reflects our confidence in the Brazilian market. In addition, the platforms come with a 10-year long-term charter at a rate of $ 299,000 a day, it’s an opportunity and it shows our confidence. “If Magni Parnters wins the auction, the executive added, Keppel plans to discuss with the company the cost of completing the platforms.

Since its foundation in 2016, Borr Drilling has expanded rapidly in the equipment market through the purchase of distressed assets, including new construction ordered from Keppel.

Sete Brazil ordered six semi-submersible drilling rigs from Keppel, but the payments stopped being made in November 2014 and the works stopped in February of the following year. In July 2014, Keppel reported that the first three semi-submersible drilling rigs were 90%, 63% and 36% completed, respectively. The first two rigs were built in the Brazilian yard of Keppel, Keppel BrasFELS.

Keppel received $ 1.3 billion from Sete Brasil before payments stopped in November 2014.

Sete Brasil also had seven drill ships ordered from Sembmarine, which also stopped in November 2014. Four of the seven rigs were between 90% and 50% completed.

Platforms orders accounted for a substantial part of orders for Keppel and Sembmarine valued at $ 4.9 billion and $ 4.8 billion, respectively.

Source: Portos e Navios Magazine

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