• Tue. Jul 5th, 2022

Oil & Gas Australia

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Keppel Terminates Clearwater and Fecon Rig Orders and Plans to Retain Payments

Apr 13, 2022

Keppel FELS Limited, a wholly-owned subsidiary of Keppel Offshore & Marine Limited, has issued notices of termination for the Relevant Contracts on 13 April 2022. The basis for termination is the failure of the respective clients without reasonable or legal justification to take delivery of the respective rigs (despite Keppel FELS’ readiness to deliver) and concurrently pay the outstanding instalments.

This is refers to the media release dated 1 October 2013 with respect to two jackup orders from an affiliate of Clearwater Capital Partners, out of which one of the rigs worth about USD$200million remains undelivered; and dated 13 February 2014 with respect to contracts to build three highspecification KFELS B Class jackup rigs for Fecon International Corp. worth about USD$650 million.

Following the termination of the Relevant Contracts, Keppel FELS will retain all payments received to date under the Relevant Contracts, and will retain ownership of the rigs, including the right to sell.

The Relevant Contracts are being terminated as part of ongoing efforts to explore other options, such as the sale and charter of these rigs.

The termination of the Relevant Contracts is not expected to have any material financial impact on the earnings per share and net tangible asset per share of the Company for the current financial year.