Grupo R’s newbuild jack-up rig reaches Mexico

Mexico’s energy services provider Grupo R has informed that its newbuild jack-up rig Cantarell III has arrived from Singapore to Mexico ahead of a new contract, which is set to start in March 2020. 

The Cantarell III jack-up rig was built by offshore rig builder Keppel in Singapore. Keppel completed and delivered the rig to the Mexican operator last December.

As part of the deal, Grupo R also entered into a sale and leaseback arrangement for the rig with a wholly-owned subsidiary of Keppel O&M.

It was agreed that Keppel O&M would purchase the rig from Grupo R for about $190m and the rig would be leased back to Grupo R on a bareboat charter at competitive dayrates over ten years. It was also agreed the rig would be deployed to work in offshore Mexico on a charter which was scheduled to start in 1Q 2020.

Under the bareboat charter, Grupo R has the right to purchase the rig at pre-agreed prices during the term of the bareboat charter. After the fifth year, Keppel O&M may, at its discretion, put the rig to Grupo R at a pre-agreed price.

In an update on Monday, Grupo R said that, after a 45-day journey from Singapore, the rig had arrived off the Campeche coast on january 27, 2020. The operator also said the rig would start operations on March 15.

The Cantarell III, a FELS B Class jack-up rig, is able to operate in water depths of 400 feet, drilling depth of 30,000 feet, and accommodate 150 personal.