Aberdeen-headquartered Awilco Drilling (OSLO: AWDR) has won a $43m arbitration case against Singapore shipbuilder Keppel FELS over a cancelled rig order.
It is the second of two arbitrations between the rig owner and yard (now named Seatrium), the first of which Awilco lost in April.
This latest $43m case is linked to a cancelled order for the Nordic Spring which cut steel in 2019 and Keppel cancelled the following year, claiming Awilco would not be able to make a scheduled payment.
Awilco Drilling said Thursday evening its subsidiary – Awilco Rig 2 Pte (AR2) – had won the ruling, with a further award to be made linked to interest and costs.
Barring any successful appeal by Keppel, the Aberdeen rig firm will be entitled to the full $43m plus interest and costs.
First case went to Keppel
Awilco lost the first arbitration (AR1) to Keppel linked to another rig called Nordic Winter which also had its order cancelled.
Keppel was seeking £200m, but the amount to be paid has not been disclosed. (The firm had sought a separate £316m for the Nordic Spring case).
In a statement to Energy Voice, Awilco COO Roddy Smith said that first contract was deliberately without any guarantees, so there is no recourse to the wider PLC parent firm.
The AR1 subsidiary is insolvent in liquidation in Singapore, casting doubt on the amounts Keppel is likely to receive.
Awilco has no other assets, having sold its last rig to Well-Safe Solutions in May 2022.
Mr Smith said the firm is reviewing investment opportunities on a case by case basis.
According to its half-year 2023 report, Awilco Drilling now has six employees left in Aberdeen.
Both the Nordic Winter and Nordic Spring have since been taken up by fellow Aberdeen-headquartered firm Dolphin Drilling.