Sembcorp Marine said its unit PPL Shipyard signed agreements for the sale of nine Pacific Class 400 jackup drilling rigs for about US$1.3 billion (S$1.77 billion).
The sale to Borr Drilling and its subsidiaries also included a market-based fee, which is calculated based on an uplift in value of the rigs sold, it said in a statement late on Friday evening.
Borr Drilling, which owns and operates jack-up rigs, will make an upfront down payment of about US$500 million while the balance will be paid at any time within five years from the respective delivery dates of the rigs, the company said.
Borr Drilling will take delivery of the nine jackup rigs over a 14-month period, from the fourth quarter of 2017 to the first quarter 2019.
The nine rigs sold include all six rigs from contracts, which PPL Shipyard had earlier terminated with its original customers, and three rigs presently under various stages of construction completion.
"The sale demonstrates the quality and ability of PPL Shipyard's high-specification jackup rigs to attract demand despite challenging market conditions," the company said in a statement.
Excluding all interest and market fee payable by Borr Drilling, the transaction for the sale of the nine jackup rigs will collectively result in a loss of approximately S$15 million, it said.
The deal will significantly improve the liquidity position of the company, Sembcorp Marine said.
Shares in Sembcorp Marine jumped 5.5 percent to S$1.83 on the Singapore Exchange. The stock has gained about 33 percent so far this year.
