Aberdeen-based Awilco Drilling has lost the first of two arbitration cases against Singapore offshore oil rig builder Keppel FELS over two cancelled semisubmersibles.
The legal dispute arose from the termination of fabrication contracts for the Nordic Winter and Nordic Spring drilling rigs. Awilco booked the duo for construction at $425m each in 2018 and 2019, but the orders were terminated due to alleged breaches of contract.
Keppel has been demanding $693m over the orders, or $424.9m and $268.9m, respectively. Both rigs have since been taken up by Dolphin Drilling.
Awilco Drilling became a rig-less firm following the sale of its fleet last year, and the company’s operations have been mostly focused on recovering deposits and other variation payments of $97.7m it made to Keppel.
The ruling relates to Rig 1 (Spring) while the arbitration process for the second rig is ongoing, and the decision is expected in Q4 2023 or Q1 2024.
The Eric Jacobs-led firm said in a filing that it was disappointed by the decision and that it would look into whether there are grounds for an appeal.
“We will revert with further information as soon as the detailed review of the arbitration award has been completed,” the company said.
