Keppel O&M completes LeTourneau acquisition

Latest LeTourneau design, the Jaguar, was introduced at last year's OTC Latest LeTourneau design, the Jaguar, was introduced at last year's OTC

MAY 3, 2016 — Singapore's Keppel Offshore & Marine (Keppel O&M) has completed its $100 million acquisition of Cameron International Corporation's offshore product division, consisting of the LeTourneau jack-up rig designs and rig kit business, as well as its after sales and aftermarket services.

The  acquisition has been made through wholly owned subsidiary, Keppel Offshore & Marine USA, Inc. and the acquired company will operate as Keppel LeTourneau, with offices in the United States, United Arab Emirates and Singapore.

Keppel O&M says the acquisition will not only broaden its line of jack-up rig designs but also expand its after sales and aftermarket services business.

Mr. Chow Yew Yuen, CEO of Keppel O&M said, "Keppel O&M is the world's leading provider of offshore jack-up rigs. This strategic acquisition will complement Keppel O&M's existing capabilities and enable us to provide our customers with a full suite of end-to-end jack-up rig solutions. With Keppel's and LeTourneau's combined engineering resources, international shipyard presence and design and equipment manufacturing competencies, we are confident of providing even better value-added solutions to drilling operators."

By adding the LeTourneau designs to its own, Keppel will have more than 26 designs for jack-up rigs covering almost every requirement and condition in the market.

Keppel will have the flexibility to customize and build the LeTourneau jack-up rigs at Keppel shipyards worldwide or to license the design to any client or shipyard through the sale of rig kits. The rig kits include jack-up leg components, elevating units/jacking systems and cantilever/skidding systems. Marine equipment such as cranes and anchor winches are also options .

The LeTourneau line of jack-up rig designs is well established with a proven track record of operating in a variety of environments. It includes the LeTourneau Super 116E, Workhorse, Super Gorilla XL and Jaguar.

The aftersales and aftermarket services business includes the sale of spare parts, field service (troubleshooting, inspection, installation and commissioning), operator training, repair and refurbishment of equipment and specialist engineering services.

Some 260 or 40% of the jack-up rigs currently in the market are of either LeTourneau or Keppel designs. More than 100  of these are over 15 years old and require regular servicing. In addition to repairs, upgrades and modifications, jack-up rigs are required to undergo five-year class recertification special periodic surveys.

With 20 yards around the world which are near market and near customer, Keppel O&M will be able to service LeTourneau rigs for their owners wherever they are, more quickly and efficiently, expediting the rigs' return to work.

As a jack-up rig is made up of thousands of components, Keppel O&M's comprehensive supply chain management system will ensure that it is able to provide the spare parts required in aftersales and aftermarket services in a timely and cost-effective manner to its customers.

"With the current low oil price, rig owners are looking more at repairing and upgrading their current fleets," Mr. Chow Yew Yuen noted. "The LeTourneau acquisition has expanded our client base, and will improve our service offerings to rig operators in helping them maintain their assets more cost-effectively. In addition, we are confident that our end-to-end packages, from rig design and construction to aftersales and aftermarket services, will be attractive to customers because they will be assured of greater reliability in product quality as well as follow up services."

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