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Keppel Offshore & Marine’s (Keppel O&M) subsidiary Keppel FELS has delivered the KFELS B Class jackup rig, Cantarell III, to a fully-owned subsidiary of Grupo R through the signing of a sale and leaseback deal.

Grupo R signed a sale and leaseback arrangement for the rig. Keppel O&M will buy the rig from Grupo R for $190m, which represents the rig’s balance contract value.

The company has already received 20% down payment of the original contract value for Cantarell III rig when the contract was initially signed in 2013. According to the company, Cantarell III will be leased back to Grupo R on a bareboat charter for over ten years.

Keppel O&M said in a statement: “Under the bareboat charter, Grupo R has the right to purchase the rig at pre-agreed prices during the term of the bareboat charter. After the fifth year, Keppel O&M may, at its discretion, put the rig to Grupo R at a pre-agreed price.”

The company noted that the rig will be deployed to work in offshore Mexico on a charter which will commence during the first quarter of 2020.

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Keppel O&M New Builds executive director Tan Leong Peng said: “We are pleased to enter into a mutually beneficial arrangement which will enable Grupo R to deploy another high-performance rig for its operations in Mexico.

“Our first sale and leaseback arrangement with Grupo R on the Cantarell IV has worked well. Cantarell IV, which was warm stacked in our yard from 2016 to the start of 2019, was able to go directly to the field upon delivery and achieve 99% uptime in its operations.”

Cantarell III is capable of operating in water depths of up to 400ft and is equipped with a fully automated rack and pinion jacking system. It also comprises a self-positioning fixation system. With a capacity to drill to depths of 30,000ft, it can accommodate up to 150 persons.