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 is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

Related Posts