Singapore’s Keppel Corporation advised that its subsidiary Keppel FELS has terminated a US$425 million contract from Awilco Drilling to build a mid-water semi-submersible drilling rig. In March 2019 the company secured a repeated order from Awilco for the construction of the mid-water semisubmersible for harsh environment use, a Moss Maritime CS60 Eco MW design. The lower hull was supposed to be built by Keppel FELS shipyard in Nantong, China, and the upper hull built by Keppel FELS in Singapore.
The construction contract signed the 11 March 2018 for a first unit, Nordic Winter, was axed in June 2020.
Keppel said: “Based on the information available, Keppel FELS has assessed that Awilco Rig 2 Pte Ltd, a wholly-owned subsidiary of Awilco Drilling PLC that is the contracting party to the Second Awilco Contract, will not be able to make payment of the second instalment under the Second Awilco Contract, which is due and payable in March 2021. Keppel FELS has therefore issued a notice of termination of the Second Awilco Contract to Awilco and has commenced arbitration to enforce its rights against Awilco. Keppel FELS reserved all its rights against Awilco, including the right to retain the amounts already paid by Awilco to date (approximately US$43 million) and seek reimbursement of Keppel FELS’ costs of the project up to the date of termination.”
Separately, Keppel announced that it has entered a lock-up agreement to support a proposed restructuring of the offshore accommodation vessel player Floatel.
(Source: Keppel Corp – Image: Moss Maritime CS60 Eco semi-submersible project/Moss Maritime)