Singaporean rigbuilder Keppel O&M has announced the termination of contracts over failure of clients to make final payments and take delivery.
The terminations are the latest linked to abandoned assets that had been ordered during the last offshore oil and gas boom in the mid-2010s but never fully paid for or delivered. In each case, Keppel retains ownership of the “legacy” assets, through an independent related company, and also retains the right to sell or charter the vessels.
The latest announcement concerns the TS Jasper, a $500 million jack-up ordered in 2014 by TS Offshore Limited; an $85 million high-specification liftboat ordered by Crystal Heights Holdings Limited in 2015; and the semi-submersible Sapura Raiqa, also ordered in 2015.
Keppel said it issued notices of termination for the contracts and will retain all payments already received. It will also retain ownership of the vessels, with the exception of the liftboat because construction has not yet commenced.
Keppel recently signed bareboat charter contracts for two so-called “legacy” jackup rigs ordered in 2013 and 2014 as the offshore oil and gas market improves.
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