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Keppel delivers jackup rig to Grupo for use off Mexico

Feb 20, 2019
3 min read
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Singapore’s Keppel Offshore & Marine has delivered the jackup rig, Cantarell IV, to Mexican driller Grupo R on a sale and leaseback deal that will see the rig used offshore Mexico.

Cantarell IV will be deployed directly to work in offshore Mexico, under an integrated drilling contract for offshore wells secured by IPC with Pemex, which will commence in early May 2019.

It is a KFELS B Class jackup designed to operate in water depths of up to 400 feet and drill to depths of 30,000 feet. It is equipped with an advanced and fully-automated high capacity rack, pinion jacking system, and a Self-Positioning Fixation System.

FELS Asset will purchase the rig from Grupo R for US$179 million which is equivalent to the balance contract value of the rig. Cantarell IV will be leased back to Grupo R on a bareboat charter, which means that Grupo R has the right to purchase the rig at pre-agreed prices during the term of the charter. After the fifth year, FELS Asset may put the rig to Grupo R at a pre-agreed price.

Chris Ong, CEO of Keppel O&M said: "As Mexico develops its oil and gas reserves, more high specification rigs such as the KFELS B Class rigs will be needed. We have previously delivered 10 such rigs to Mexico which have delivered robust, efficient and economical performances."

Jose Ramiro Garza, CEO of Grupo R added, "We are pleased to be able to partner Keppel to bring this rig to work for Pemex in Mexico. The fields where the rig will operate is expected to produce up to 210,000 bpd of crude and 350 million mmcfd of natural gas by 2020, resulting in more opportunities for the rig to be deployed in future. As a leading rig operator in Mexico, we are well positioned to meet the country's drilling demands."

He added: "Our two jackups from Keppel FELS, Cantarell I and II have been achieving exceptional performances ever since they started working for Pemex in Mexico. In the last two years, they recorded uptimes of 99% and have clocked the best drilling times for both a JSO well and Cenozoic well. This is a result of having the right rig design, the choice yard to deliver a quality rig and our unmatched operating expertise. I am confident Cantarell IV will break new records in Mexico as well."

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