Singapore's Keppel Offshore & Marine (KOM), via subsidiary, Keppel Offshore & Marine USA has inked a deal with Cameron International Corporation, a US-based oil and gas solutions provider, to acquire its offshore rigs business for US$100mln.
This segment is made up of Cameron's proprietary LeTourneau jack up rigs designs, its rig kit business, and aftermarket services. The LeTourneau jack up rigs designs have been popular with certain market segments and will help Keppel expand its suite of jackup rig offerings, Keppel said in a statement.
Under the agreement, a new subsidiary known as "NewCo" will be 100%-owned KOM USA, which houses the offshore rig business.
With the acquisition, Keppel will be able to offer customers the LeTourneau designs by selling rig kits to shipyards, or delivering ready-to-drill rig solutions from Keppel yards worldwide.
Cameron will transfer its business other than certain equipment and inventory located in the United Arab Emirates and Singapore, into NewCo prior to completion of the SAPA. It will also transfer certain equipment and inventory of the business located in the United Arab Emirates and Singapore to KOM United States’ affiliates.
Keppel O&M says the LETOURNEAU suite of jackup rig designs are "established" designs that have been popular with certain market segments and have a proven track record of operating in a variety of environments.
With about 100 LeTourneau rigs currently operating around the world, many operators require servicing and repair of their rigs, Keppel said.