Awilco Drilling has notified the Singaporean rig builder Keppel FELS that it has exercised its contractual termination proper below the newbuilding contract between the 2 events for the development of a semi-submersible drilling rig, Nordic Spring, on account of breaches below the Vessel Construction Contract. At the identical time, Awilco has additionally exercised its contractual rights below the contract and given KFELS discover of termination on account of Force Majeure.
The vessel development contract offers that on termination Awilco might be entitled to a refund of the instalments paid to KFELS of USD 43.zero million plus accrued curiosity.
Nordic Spring is among the two semi-submersible drilling rigs of Moss Maritime CS60 Eco MW design ordered by Awilco Drilling subsidiaries from KFELS, which each now have been terminated. In addition, a separate Awilco Drilling subsidiary has an choice for one additional rig of the identical design.
Keppel FELS had issued a discover of termination of the Second Awilco Contract on four December 2020 and commenced arbitration to implement its rights in opposition to Awilco, together with the appropriate to retain the quantities already paid by Awilco so far and search reimbursement of Keppel FELS’ prices of the mission as much as the date of termination by Keppel FELS. As Keppel FELS has already terminated the Second Awilco Contract on four December 2020, it’s Keppel FELS’ place that the Notice can don’t have any impact. In any occasion, Keppel FELS denies the allegations made by Awilco. As on the date of this announcement, Keppel FELS doesn’t count on any reversal of income recognised in respect of the Second Awilco Contract. The valuation of the asset below the Second Awilco Contract might be assessed on the finish of every monetary reporting interval.
(Source: Awilco Drilling/ Keppel O&M – Image: Awilco Drilling)
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