Singapore’s Keppel Offshore & Marine says it has entered into a settlement agreement with Sete Brasil in relation to contracts for the construction of six semi-submersible drilling rigs.
As part of the settlement, Keppel subsidiary Fernvale will take over ownership of four uncompleted rigs and the contracts will be deemed to be amicably terminated, with no penalties or refunds.
The other two rigs under construction, Urca and Frade, will have $260m recognised as part of the undisputed debt in Sete Brasil’s court-approved judicial reorganisation plan. The amount will be paid to Fernvale proportionally with the other creditors of the Sete Group.
The two rigs are part of a deal Sete has reached with Tor Olav Troim’s Magni Partners for the sale of four rigs. Fernvale is in discussions with Magni Partners on the terms to complete the construction of the pair, which are about 92% and 70% completed respectively.