Keppel FELS gets LOI for two jack-up drilling rigs

Bangkok, Thailand, based Mermaid Maritime Public Company Limited and Keppel Offshore & Marine subsidiary Keppel FELS Limited have entered into a Letter of Intent with a combined value of about US$360 million. It covers construction at the Singapore shipyard of two jack-up rigs (plus options for two more) for a new Mermaid-led joint venture: Asia Offshore Drilling Limited.

The rigs would be based on Keppel FELS’ MOD V-B design, capable of operating in waters of 350 ft and equipped with offline handling features and accommodations for 150 people.The first two jack-up rigs would be delivered in December 2012 and March 2013.

The value of the first two jack-up rigs is estimated to be about US$180 million each.

RS Platou Markets has been retained as financial advisor to AOD and Mermaid plans to invest equity in AOD and to seek other investors who will jointly invest with Mermaid to raise initial capital for the venture to fund the first two jack¥up rigs.

It is expected that the rig construction and option contracts between AOD and Keppel will be formally executed on the successful conclusion of the equity placement and finalization of technical specifications and terms and conditions.