Singapore’s Keppel has agreed a five-year extension to the bareboat charter of its AD110 jackup rig with Saudi contractor Arabian Drilling Company, in a deal valued at about $51m, Splash 247 reported. Signed through Keppel’s RigCo Holding subsidiary, the agreement covers 2026 to 2030 and follows directly from the existing charter, rather than representing a separate deployment.
AD110 is working offshore Saudi Arabia for a client of Arabian Drilling whose identity was not disclosed. The unit was one of the jackups sent to the country under bareboat charter agreements obtained in 2022. Keppel said the renewal demonstrated sustained Middle Eastern demand for modern drilling rigs with high specifications, according to Splash 247.
The extension forms part of a broader effort by Keppel to secure revenue from its remaining offshore drilling assets before selling them. The group said it was seeking additional charter extensions and renewals to reinforce contracted cash flows and improve asset values ahead of planned divestments. Its monetisation plans centre on the Keppel Offshore Fund, which has backing from US investment firm Apollo Global Management.
The fund was set up under a programme announced in July 2026 to monetise as many as 10 legacy rigs progressively. Splash 247 put the programme’s overall value at approximately S$3.7bn ($2.9bn). AD110 is among six operating rigs designated for an initial transfer to the fund, although that transaction remains dependent on the necessary conditions being met. Apollo agreed to provide $1.5bn to the vehicle, while the initial six-rig acquisition was expected to cost about S$1.2bn.
Separately, Keppel recently awarded Seatrium a contract exceeding S$500m ($390m) to finish four incomplete rigs. That work covers a seventh-generation drillship, a jackup designed for harsh environments and two mid-water semisubmersibles. The completion contract and charter renewal sit alongside the group’s stated effort to monetise its remaining drilling assets.