Apollo Global Management has agreed to invest $1.5 billion into a new private fund, Keppel Offshore Fund, as part of Keppel's (SGX:BN4) program to monetize up to 10 legacy rigs, according to company filings on Monday.
Keppel plans to progressively divest 10 oil rigs held by its indirect subsidiary, RigCo Holding, for about SG$3.7 billion. The Singapore-based global asset manager said the transaction will help monetize non-core assets, unlock capital for reinvestment, and reward shareholders.
Under the first phase, Keppel will divest six operational rigs to the new fund this year for roughly SG$1.2 billion, receiving about $478 million in cash consideration. Keppel will fulfill its 50% contribution to the fund via an in-kind transfer.
Keppel also intends to divest four additional uncompleted rigs to the fund between 2027 and 2028, with construction funded using cash retained within RigCo.
The initial phase is expected to add about SG$3.9 billion to Keppel's funds under management.
Additionally, Keppel announced it will record an accounting loss of approximately SG$92 million from the divestment of the first six rigs in its first-half 2026 financial results, which are scheduled to be announced at the end of the month.
"This transaction ... establishes a clear pathway for the progressive monetization of the legacy rigs," Keppel CEO Loh Chin Hua said.
"By repositioning the six operational rigs and potentially another four rigs, within Keppel's fund management platform, we are expanding our FUM and will earn recurring management fees."
Apollo partner Jamshid Ehsani described the deal as "one of the first transactions of its kind in Southeast Asia."
"[T]his partnership with Keppel demonstrates growing global demand among leading companies for high-grade capital solutions that advance strategic objectives," Ehsani said.
Keppel's shares rose 2.4% in late-morning trade in Singapore on Tuesday.
