Sembcorp Marine has announced that its subsidiary PPL Shipyard has served a notice to commence arbitration proceedings against Marco Polo Drilling in order to solve a contract dispute between the two companies.
Marco Polo Drilling 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”.
Sembcorp Marine commenced an action in the Singapore High Court on December 2015 against the parent company of Marco Polo Drilling, Marco Polo Marine, the guarantor, for the amounts due under the contract.
Sembcorp Marine said it will make further announcement when necessary.