Sembcorp Marine and Marco Polo Marine fight over rig cancellation

Sembcorp Marine and Marco Polo Marine fight over rig cancellation

Sembcorp Marine will fight Marco Polo Marine over the contract for a nearly completed rig. Both parties claim the other is in breach of contract for a rig being built at PPL Shipyard. Marco Polo Marine moved to terminate the contract on November 17, just 13 days prior to its delivery date with the rig more than 98% complete.

Earlier this week Marco Polo said it has started legal proceedings to recover the initial deposit paid for the rig.

PPL Shipyard believes the sudden termination was because Marco Polo Marine was looking to avoid the second downpayment on the rig, worth $21.43m, something the yard had already deferred twice at the request of the owner.

Singaporean yards have been rocked by many offshore cancellations this year as the low global oil price has wreaked havoc in the sector.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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