Keppel shares surged 3.08% during Tuesday's trading session, as investors cheered the company's announcement of a landmark deal to monetise its legacy oil rig assets through a new private fund backed by Apollo Global Management.

The rally came after Keppel disclosed on Monday evening that it will divest up to 10 oil rigs for nearly S$3.7 billion, starting with six operational rigs to the newly established Keppel Offshore Fund for about S$1.2 billion. Apollo has committed to invest US$1.5 billion into the fund, with Keppel expected to receive approximately S$611 million in cash proceeds from the initial divestment. The transaction is projected to add around S$3.9 billion to Keppel's funds under management, advancing its strategy to monetise non-core assets, reduce debt, and free up capital for new investments.

While Keppel noted it will book an accounting loss of S$92 million from the divestment of the six rigs in its upcoming first-half results, the market focused on the longer-term strategic benefits. The partnership with Apollo is seen as one of the first of its kind in Southeast Asia's offshore energy market, which is experiencing high utilisation rates and robust long-term demand trends. Keppel also intends to divest four additional rigs currently under construction to the fund between 2027 and 2028, potentially generating another S$988 million in cash proceeds.