General – Keppel Singapore
Singapore yard Keppel Offshore & Marine is terminating jack-up rig building contracts signed with an affiliate of Clearwater Capital Partners, and Fecon International, in October 2013 and February 2014, respectively.
Significantly, the yard will preserve the drilling models and is exploring the sale and constitution of the rigs.
Keppel in October 2013 mentioned it had acquired two jack-up rig orders from an affiliate of Clearwater Capital Partners, with the rigs on account of be completed in 4Q 2015 and 1Q 2016. Yesterday, in keeping with Keppel, one of many two rigs, price about $200 million stays undelivered.
Clearwater in 2014 bought one of many two rigs ordered to Arabian Drilling Company (ADC), whereas it was nonetheless being constructed.
Regarding the Fecon deal, Keppel in February 2014 introduced contracts to construct three high-specification KFELS B Class jack-up rigs for Fecon International, price about $650 million.
The three rigs had been initially on account of be delivered progressively inside 2H 2016.
Keppel mentioned on Wednesday that it has issued notices of termination for the related contracts, citing “the failure of the respective clients without reasonable or legal justification to take delivery of the respective rigs (despite Keppel FELS’ readiness to deliver), and concurrently pay the outstanding instalments.”
“Following the termination of the relevant contracts, Keppel FELS will retain all payments received to date under the relevant contracts, and will retain ownership of the rigs, including the right to sell. The relevant contracts are being terminated as part of ongoing efforts to explore other options, such as the sale and charter of these rigs,” mentioned Keppel.