Sembcorp Marine fires back on Marco Polo rig cancellation

Sembcorp Marine fires back on Marco Polo rig cancellation

Sembcorp Marine has announced that its subsidiary PPL Shipyard has not received any notice of contract termination from Marco Polo, following the latter’s announcement yesterday that it has cancelled its order for a Pacific Class 400 jack-up drilling rig at PPL Shipyard.

Marco Polo said the cancellation was due to the yard’s “failure to comply with certain of its material contractual obligations” and it would seek a refund of around $21.4m from PPL.

Sembcorp Marine said PPL Shipyard disagrees with the allegations from Marco Polo and will regard it as repudiatory breach of the contract and will terminate the contract and claim amounts due under the contract against MP Drilling and its guarantor Marco Polo. PPL Shipyard will also take necessary steps to enforce its rights.

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.

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