Keppel axes two jackup rig contracts

Singapore’s Keppel Offshore & Marine is terminating jackup rig construction deals agreed with an affiliate of Clearwater Capital Partners, and Fecon International back in 2013 and 2014, respectively. 

Clearwater affiliate ordered two jackups in October 2013, one of which was flipped in early 2014, while the other one, worth around $200m, remains undelivered.

Keppel Fels, a wholly-owned subsidiary of Keppel Offshore & Marine, also received an order to build three jackups worth $650m for Fecon International in February 2014.

The yard issued notices of termination of the contracts on April 13 and will retain all deposits received to date and retain ownership of the rigs, including the right to sell.

“The basis for termination is the failure of the respective clients without reasonable or legal justification to take delivery of the respective rigs (despite Keppel Fels’ readiness to deliver) and concurrently pay the outstanding instalments,” Keppel said in a statement.

The contracts are being terminated as part of ongoing efforts to explore other options, such as the sale and charter of these rigs. The move is not expected to have any material financial impact on the earnings per share and net tangible asset per share of Keppel Corporation for the current financial year.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
Back to top button