Rig builder Keppel Fels is “considering legal options” after Oslo-listed contractor Awilco pulled the plug on a $425 million order.
Awilco, headquartered in Westhill, near Aberdeen, alleged Keppel Fels had breached the contract for the construction of the Nordic Winter semi-submersible vessel.
The customer “exercised its contractual termination right” and said it would be entitled to a refund of instalments paid to Keppel of $54m plus interest.
Singapore-based Keppel denied the allegations and has rejected the “purported” termination of the contract.
Keppel said it intended to keep all payments received to date and seek compensation if Awilco defaults on payments.
It claimed Awilco served the termination notice shortly before a payment of $32m was due June 9 — a payment which was previously deferred with Keppel’s consent.
Nordic Winter is one of the two semi-submersible drilling rigs of Moss Maritime CS60 Eco MW design ordered by Awilco Drilling subsidiaries from Keppel Fels.
In addition, separate Awilco Drilling subsidiaries have rig independent options for two additional rigs of the same design.