Sale and leaseback deal sees Grupo R take delivery of jack-up

Written by Nick Blenkey
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Cantarell IV

Singapore’s Keppel FELS shipyard has delivered the first rig equipped with Keppel’s proprietary RigCare digital solutions to Mexico’s Grupo R.

Delivery of the jack-up rig, the Cantarell IV, came after Grupo R reached a sale and leaseback agreement that will see FELS Asset Co Pte. Ltd., a wholly-owned subsidiary of Keppel O&M, purchase the rig from Grupo R for US$179 million, equivalent to the balance contract value of the rig. Cantarell IV will be leased back to Grupo R on a bareboat charter at competitive day rates over five years. IPC, the parent company of Grupo R, will provide a parent company guarantee on Grupo R’s charter payment obligations.

Cantarell IV will go to work offshore Mexico in early May under a contract secured by IPC with Pemex.

“This transaction demonstrates how we are able to leverage the strengths of Keppel O&M to achieve win-win solutions for all stakeholders,” said Chris Ong, CEO of Keppel O&M. “Keppel FELS will be able to deliver the rig at full value; Grupo R will be able to lease the rig to begin operations in Mexico; and Keppel O&M will benefit from acquiring a quality rig at attractive commercial terms while generating regular and predictable cash flows from the charter at a good rate of return.”


Cantarell IV is the first rig equipped with Keppel’s proprietary RigCare Solution – a suite of digital services to support the rig’s lifecycle needs, significantly increasing uptime and safety while reducing maintenance costs.

Features include the use of:

  • Industrial Internet of Things (IIOT) to enhance automation and mobile operations;
  • Smart sensors to drive towards condition based class surveys in a joint development project with ABS to lower down time and reduce maintenance costs;
  • Digital Twin based analytics to predict machine failure and enhance overall efficiency and robustness with real-time data; and
  • Real-time optimization of the rig’s operations
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