Singapore company Falcon Energy has announced that it has cancelled its order for three out of four jack-up rigs from Shanhaigun New Shipbuilding.
The company said its subsidiary FTS Derricks had entered in to four construction contracts with the builder in 2013, for four rigs.
Falcon said it had provided performance guarantees to the amount of $784.8 million, for the four contracts.
But the performance guarantee for three of those rigs is no longer in effect as the builder and FTS Derricks both decided to terminate the contracts.
Discussions are ongoing between both parties over the contract for the fourth rig.
Recommended for you
