Awilco Drilling Scraps Semi-Sub Rig Deal with Keppel

Bartolomej Tomic
Monday, June 8, 2020

Offshore drilling company Awilco Drilling has terminated an offshore rig construction deal with Keppel, citing a breach of contract.

Awilco said Monday that its subsidiary Awilco Rig 1 (AR1) had notified Singapore-based Keppel FELS that it had exercised its contractual termination right under a newbuilding contract between KFELS and AR1 for the construction of a semi-submersible drilling rig, Nordic Winter, "as a result of breaches under the Vessel Construction Contract."

The vessel construction contract provides that on termination AR1 will be entitled to a refund of the installments paid to KFELS of $54,720,985 plus accrued interest, Awilco Drilling said. The company did not provide any details on the alleged breaches under the rig construction contract.

Awilco Drilling in 2018 caught the offshore drilling world by surprise when it ordered a harsh environment semi-submersible drilling rig from Singapore's Keppel. This was followed by another newbuild order of the same type and with the same company in 2019. These were first such orders after the previous oil price collapse.


Related: Awilco Drilling Posts 'Nil' in 1Q Revenue. In Talks for Newbuilds Funding, Deployment


The first rig was expected to be delivered in April 2021, with the second one - the Nordic Spring - scheduled delivery in March 2022. Remaining capital commitments at the end of the first quarter of 2020 in respect of the two new-build rigs total $757.6 million.

The company's Awilco Rig 1 subsidiary was due to pay $31.9 million to Keppel in June as part of the balance of the second installment for the first newbuild rig.

Offshore Engineer has reached out to both Awilco and Keppel, seeking more info on the alleged breaches of contract, and on the status of the second rig. 

Regarding the contract breach, an Awilco Drilling spokesperson said the company couldn't provide any more details "at this point."

Asked about the status of the second rig, the spokesperson said: "The construction of the 2nd rig, Nordic Spring, continues according to contract."

Keppel on Tuesday issued a statement denying Awilco's claims on the breach of contract and said it was considering legal action. Read more here.

Categories: Energy Drilling Industry News Activity Rigs Singapore

Related Stories

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Pakistan’s OGDC to Start Production at ADNOC’s Offshore Block by 2027

Valeura Wraps Up Infill Drilling Campaign in Gulf of Thailand

Sapura Energy Nets $720M from Multiple Drilling Services Contracts

Eco Wave Finds Partner for Wave Energy Project in India

Initial Drilling Results Raise Questions on South Korea’s Offshore Gas Viability

US Operator Finds Oil Offshore Vietnam

Pharos Energy Extends Licenses for Two Vietnamese Gas Fields

Current News

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

EnQuest Bags Two Production Sharing Contracts off Indonesia

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Indonesia Awards Oil and Gas Blocks to Boost Reserves

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

CNOOC Puts Into Production New Oil Field in South China Sea

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com