Marco Polo cancels rig construction contract

Marco Polo (MP) Drilling has cancelled its order for a Pacific Class 400 jack-up drilling rig at Singapore’s PPL Shipyard, which MP said was due to the yard’s “failure to comply with certain of its material contractual obligations”.

“MP Drilling has taken into account various factors including cracks found on all three legs of the new rig during two rounds of tests, notwithstanding repair works carried out by PPL after the first round of tests,” parent company Marco Polo Marine said in an exchange filing today.

The construction contract, worth $214.3m, was signed on February 26, 2014, but today the Marco Polo Marine subsidiary served the shipyard with a notice of termination and says it will not take delivery of the unit.

The drilling company says it will seek a refund from PPL of around $21.4m plus interest, approximately 10% of the original contract price, which was paid to the yard after the rig construction contract was signed.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
Back to top button