Singapore's KS Energy in $175 mln rig charter deal

SINGAPORE, March 27 (Reuters) - Singapore oil services firm KS Energy said on Thursday it has secured a $175 million deal to rent out an offshore rig to an oil exploration firm for up to four years, confirming an earlier Reuters report.

"The KS MedStar-1 will serve drilling activities in the Mediterranean Sea for a firm contract period of 3 years plus a renewal option for one year," the company said in a statement.

The charter contract for the jackup rig is valued at $130 million for the first three years and at $175.2 million if the one-year option is exercised, the statement said, without naming the oil firm.

A company source had told Reuters earlier that the rig deal would be worth over $200 million.
KS Energy suspended trade in its shares late on Wednesday pending an announcement. Its stock last traded at S$1.63, valuing the company at about $300 million.

The charter deal would be the first for KS Energy, which embarked into the offshore oil services business in May last year when it acquired Norway-based Atlantic Oilfield Services.

Oil firms are boosting exploration efforts to tap record crude prices.

KS Energy now has a combined fleet of about 20 onshore and offshore rigs, with one jackup rig under construction at the MIS Shipyard in the Middle East.