Extension enhances earnings visibility for one of the operational rigs earmarked for divestment to Keppel Offshore Fund 

Keppel Ltd. (Keppel) announced that Rigco Holding Pte. Ltd. (RigCo), an indirect subsidiary of Keppel, has secured an extension of the bareboat charter for AD110, a jackup rig with Arabian Drilling Company (ADC). The charter extension is for approximately five years, commencing in 2026 and extending to 2030, in direct continuation following its prior contract and has an estimated contract value of approximately US$51 million (approximately S$65 million), subject to the terms and conditions of the charter. The AD110 rig is currently deployed in Saudi Arabia for operations for ADC’s Client.

The AD110 rig is one of the six operational rigs identified under Keppel’s approximately S$3.7 billion^[1] programme announced in July 2026 to progressively monetise up to 10 legacy rigs through Keppel Offshore Fund (KOF). Under the programme, the six operational rigs are expected to be divested to KOF in 2026, subject to the satisfaction of certain conditions. The programme is designed to advance the monetisation of legacy assets while increasing Keppel’s funds under management and generating recurring asset management income.

The charter extension reflects continuing demand for modern, high-specification jackup rigs in key offshore markets. The AD110 rig was among the rigs deployed to Saudi Arabia under bareboat charter arrangements secured in 2022. Since then, utilisation and day rates for jackup rigs have continued to remain solid amid growing preference for modern drilling units with extremely limited additional supply under construction.

Ms Cindy Lim, Chief Executive Officer, Infrastructure of Keppel and Non-Executive Director of RigCo said, “This charter extension demonstrates the underlying value of contracted offshore assets with established operating track records and visible cash flows. The AD110 rig is one of the operational rigs earmarked for divestment to the Keppel Offshore Fund, and the extension enhances its earnings and cash flow visibility while supporting the monetisation of our legacy rig portfolio. We are actively pursuing further charter contracts and renewals across our rig portfolio to strengthen contracted cash flows and enhance asset value ahead of monetisation. The transaction also reflects improving sentiment in the offshore drilling market and sustained demand for modern jackup rigs from leading operators in the Middle East.”

The above-mentioned agreement is not expected to have any material impact on the net tangible asset per share or earnings per share of Keppel Ltd. for the current financial year.

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 About Keppel

Keppel Ltd. (SGX:BN4) is a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity. Headquartered in Singapore, Keppel operates in more than 20 countries worldwide, providing critical infrastructure and services for renewables, clean energy, decarbonisation, sustainable urban renewal and digital connectivity. Keppel creates value for investors and stakeholders through its quality investment platforms and diverse asset portfolios, including private funds and listed real estate and business trusts.

^[1] Subject to certain conditions being met including, among others, the purchase price of the additional four rigs falling within an agreed valuation range for each such rig.