Marco Polo (MP) Drilling has initiated legal proceedings against PPL Shipyard, which has declined to give its client a refund on its initial payment on a jack-up drilling rig built at the Singapore yard.
MP Drilling says that during two rounds of tests it found cracks on all three legs of a Pacific Class 400 rig built at the Sembcorp Marine-owned yard. Repair works were carried out by PPL after the first round of tests.
The drilling company seeks a refund from PPL of around $21.4m plus interest, approximately 10% of the original $214.3m contract price. The initial payment was made to the yard after the construction contract was signed in February 2014.
The specific nature of the contractual dispute resolution process was not disclosed.
MP Drilling says it will not take delivery of the unit and has served the shipyard with a notice of contract termination on November 17. PPL claims not to have received the notice.
