Keppel suspends work on Sete Brasil rigs

Keppel suspends work on Sete Brasil rigs

Singapore shipbuilder Keppel Corporation has suspended work on rig ordered by Sete Brasil, after the Brazilian company’s shareholders approved a resolution to file for a judicial recovery.

Sete Brasil ordered six rigs in total at Keppel and hasn’t been unable to pay the shipyard due to its financial difficulties. The company filed for a bankruptcy last week.

Keppel said it has stopped work on the rigs last year and will not resume construction until payments re-commence.

Keppel has also made a provision of S$230m ($170.4m) for the contracts in the last financial year and the company continues to believe that the provisions are sufficient.

Another Singapore shipbuilder Sembcorp Marine commenced arbitration proceeding last week against various subsidiaries of Sete Brasil over seven drillship on order.

Keppel said it will continue to monitor and evaluate the situation to best protect the company’s interests.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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