Norway’s Awilco Drilling has announced that it has notified Keppel FELS that it has exercised its contractual termination right under a newbuilding contract for the construction of semi-submersible drilling rig Nordic Spring.
The company claimed that the termination is a result of breaches under the shipbuilding contract, and that it was entitled to a refund of the instalments paid to the shipyard of $43m plus relevant interest.
Earlier this month, Keppel FELS already terminated the contract with Awilco Drilling for the rig and commenced arbitration to enforce its rights.
Awilco ordered two rigs at Keppel at $425m each, the first in 2018 and the second in 2019. Keppel’s move to terminate the second rig comes after Awilco terminated the contract for the first rig, Nordic Winter, in June claiming breaches under the vessel construction contract.