Keppel acquires offshore business

Singapore-headquartered Keppel Offshore & Marine announced on Monday the acquisition of oilfield services provider Cameron International Corporation’s offshore business through its US subsidiary.

The $100-million stock and asset purchase agreement will see the Singaporean company gain Cameron’s aftermarket services and several different LETOURNEAU rig designs, including Workhorse, Jaguar, Super 116E, and Gorilla XL.

Due to its international network of shipyards, Keppel Offshore & Marine will be able to carry out maintenance, upgrade and survey work on the popular LETOURNEAU rigs, which number about 100.

“With the current low oil price, we have seen a slowdown in newbuild rig orders. Rig owners are instead looking at repairing and upgrading their current fleet. We believe that we can make best use of our after sales service infrastructure to service rigs of both the LETOURNEAU, as well as Keppel FELS designs,” Keppel Offshore & Marine CEO Chow Yew Yuen said in a company statement.

Last Wednesday, Cameron announced a merger agreement with US oilfield services major Schlumberger. The deal is valued at $14.8 billion and is still subject to shareholder approval.