Offshore staff
SINGAPORE – Keppel FELS Ltd. says that it has terminated construction contracts for a total of four jackup rigs it secured in 2013 and 2014 from an affiliate of Clearwater Capital partners and Fecon International Corporation, respectively.
The company noted in its recent statement that Keppel FELS, a wholly owned subsidiary of Keppel Offshore & Marine Limited, had issued notices of termination for the Relevant Contracts on April 13, 2022.
In a press release, Keppel said that the basis for termination was “the failure of the respective clients without reasonable or legal justification to take delivery of the respective rigs (despite Keppel FELS’ readiness to deliver) and concurrently pay the outstanding installments.”
The release added: “Following the termination of the relevant contracts, Keppel FELS will retain all payments received to date under the relevant contracts, and will retain ownership of the rigs, including the right to sell. The relevant contracts are being terminated as part of ongoing efforts to explore other options, such as the sale and charter of these rigs.”
In October 2013, Keppel said it had received two jackup rig orders from an affiliate of Clearwater Capital Partners, with the rigs due to be finished in 4Q 2015 and 1Q 2016. As of April 12, 2022, according to Keppel, one of the two rigs, worth about $200 million, remained undelivered. In 2014, Clearwater sold one of the two rigs ordered to Arabian Drilling Company while it was still being built.
In February 2014, Keppel said that it had contracts to build three high-specification KFELS B Class jackup rigs for Fecon International, worth about $650 million. The three rigs were originally due to be delivered progressively within 2H 2016.
04.19.2022
