Norway’s Awilco Drilling has served notice to Singapore yard Keppel FELS that it has terminated the newbuilding contract between the two companies for semi-submersible drilling rig Nordic Winter.
Awilco says it has exercised its contractual termination right as a result of breaches under the vessel construction contract, and that its subsidiary AR1 is entitled to a refund of instalments paid to the value of $54.72m plus accrued interest.
The rig contract is worth a total of $425m, of which $31.875 was expected to be paid as an instalment today.
Responding with a statement on the Singapore Exchange this morning, Keppel FELS said: “Keppel FELS denies the allegations by Awilco in the Notice and has rejected the purported termination of the Contract. Keppel FELS is currently considering its legal options and evaluating potential financial impact in consultation with its advisors. Keppel FELS has further reserved all its rights under the Contract, including the right to retain the instalments already received and to seek compensation for the work done to date in the event that Awilco defaults in the payment of the 9 June Instalment.”
Nordic Winter is one of the two semi-submersibles ordered by Awilco Drilling at Keppel, having first signed contracts in March 2018 and taking an option for a second rig in March 2019. The company has two further options available.