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Friday, June 5, 2020 

Keppel Offshore & Marine (Keppel O&M) has, through its wholly-owned subsidiaries, Keppel FELS Limited and Offshore Partners, entered into a Framework agreement with Borr Drilling, under which Keppel O&M will defer the scheduled delivery of five jackup rigs to 2022, to be delivered progressively.

These five rigs are part an 11-rig order, with six delivered to date. The agreement follows an announcement by Borr Drilling that it had, in response to the weakening market, entered into discussions with lenders and shipyards to postpone yard commitments and defer cash interest payment to strengthen its liquidity situation.

Under the original contract, three rigs were scheduled for delivery in 2020 and the remaining two by early 2022. These have now been deferred to one delivery by the second quarter of 2020, and the remaining four by the third quarter of that year.

Keppel says that three of the six so far delivered have been paid for in full, and the others, apart from one rig, are subject to credit arrangements partly financed by Keppel O&M. There is no seller’s credit arrangement in respect of the remaining rig.

The new agreement is dependent on conditions including Borr Drilling obtaining of key creditor consents including  deferral of principal and/or interest payments under certain credit facilities, sale and purchase and construction agreements and the relaxing of certain restrictive covenants.

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