Singapore’s Keppel Corporation has terminated three contracts with different clients worth over $585m.
The $500m contract signed in 2014 with TS Offshore for the construction of the jackup drilling rig TS Jasper has been terminated, as the client has not paid the outstanding amounts due.
The second contract, worth around $85m for a high-spec liftboat, has also been cancelled for a similar reason. The contract was signed in July 2015 with Crystal Heights Holdings and the construction had not and will not be commenced, Keppel said.
Finally, a deal for the tender-assist semisub rig Spuraa Raiqa has also been axed given that the client “no longer intends to perform” its remaining contractual obligations, including accepting delivery of the rig and making the remaining payments.
Keppel added that following the termination of the contracts, it would retain all payments already received and retain ownership of the vessels built, including the right to sell them.
The TS Jasper and the Sapura Raiqa are two of the assets to be transferred to a joint venture company with Sembcorp Marine, upon the completion of the proposed merger of the two entities.
