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.