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 divest 10 oil rigs held by its indirect subsidiary, Rigco Holding, for around SG$3.7 billion, the Singapore-based global asset manager said.
Keppel aims to divest six rigs to the new Keppel Offshore Fund (KOF) this year for around SG$1.2 billion, for which it will receive a cash consideration of about $478 million. It will make 50% of the contribution to the new private fund through an indirect unit.
The transfer is expected to add about SG$3.9 billion to Keppel's funds under management.
The fund manager also plans to divest four additional rigs, which are in various stages of completion, to the new fund from 2027 to 2028. The transaction is expected to generate $988 million in cash proceeds for Keppel.
Keppel noted it will recognize an accounting loss of around SG$92 million from the six operational rigs being divested to KOF in its H1 2026 results.