Keppel announced on Thursday that she will exit the right-building business. Keppel Offshore and Marine. (KOM) will be split into three companies.
1) Operating Co – An asset and people light company focused on design, engineering and procurement; fabrication to be subcontracted to third parties;
2) Rig Co – To charter/manage Keppel Corp’s rigs with the ultimate aim to sell all rigs; to be dissolved thereafter;
3) Development Co – To complete construction of Keppel Corp’s order book; to be dissolved thereafter.
This is not unexpected as Keppel has been dragged down by its rig business in recent years following the oil crisis, writing down assets worth hundreds of millions.
In my previous article, I had cited almost exactly the strategy that Keppel is doing today.
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“Otherwise, there are also possibility of selling KOM businesses in parts if not wholly, such as disposal of Rig business, Floatel business, FPSO business, Marine business,...
