Keppel Offshore & Marine subsidiary Keppel FELS will terminate three contracts that will see the Singapore yard seize ownership of a jack-up and semi-submersible rig, that it will have the rights to sell, after clients failed to pay up.
The first contract covers a jack-up drilling rig dubbed TS Jasper Vessel ordered by TS Offshore in deal announced in March 2014 and worth US$500 million, said Keppel.
The second contract covers a semi called Sapura Raiqa Vessel announced in January 2015.
The third contract covers a deal worth US$85 million to build a high specification lift boat for Crystal Heights Holdings announced in July 2015.
All clients have failed to meet their payment obligations under the deals. Keppel said it will retain all payments made to date and will retain ownership of the two rigs, including the right to sell them. Construction of the lift boat had not started and will not start, added the yard.