Keppel’s Rigco, Seatrium to complete four offshore rigs in deal worth over S$500 million

[SINGAPORE] Keppel’s wholly owned subsidiary Rigco Holding and Seatrium will collaborate to complete construction work on four offshore rigs under a contract with an estimated value of more than S$500 million.

The four rigs owned by Rigco comprise a premium seventh-generation drillship, a harsh-environment jackup rig and two mid-water semi-submersibles designed for harsh operating conditions in north-west Europe, the companies said in a joint statement on Monday (Oct 26).

The construction work will be carried out under an existing master services arrangement between the two companies, with the estimated contract value to be funded by Rigco’s existing cash reserves.

The drillship and jackup rig are expected to be delivered to Rigco in 2027 and 2028, respectively, “positioning them for charter opportunities and eventual monetisation through the Keppel Offshore Fund”, noted the companies.

Construction plans for the remaining two rigs are still being assessed.

The companies said that offshore rig market conditions are improving following more than a decade of limited new-build activity and the gradual retirement of older rigs.

Higher utilisation rates, an ageing global drilling fleet and supply constraints, alongside growing energy security needs, are expected to support demand for offshore rigs.

“The demand for deep-water and harsh-environment rigs is expected to increase over the next several years, providing conducive conditions for new, long-term charters”, said Cindy Lim, CEO of infrastructure at Keppel and non-executive director of Rigco.

“The resumption of construction work marks an important milestone in Keppel’s strategy to transform Rigco’s work-in-progress offshore rigs into high-quality, income-generating assets,” she added.

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The phased completion forms part of Keppel’s programme announced in July 2026 to progressively monetise up to 10 legacy rigs through the Keppel Offshore Fund, which is managed by Keppel and co-invested with Apollo as a limited partner.

Shares of Seatrium closed S$0.03 or 1.7 per cent higher at S$1.81 on Friday. Shares of Keppel closed S$0.05 or 0.5 per cent lower at S$10 on Friday.