Awilco exercises contractual termination for the construction of a semi-submersible drilling rig
Awilco Rig 2 Pte. Ltd. (“AR2”), a wholly owned subsidiary of Awilco Drilling PLC (“Awilco Drilling”), has notified Keppel FELS Limited (“KFELS”) that it has exercised its contractual termination right under the newbuilding contract between KFELS and AR2 for the construction of a semi-submersible drilling rig, Nordic Spring, as a result of breaches under the Vessel Construction Contract. At the same time, AR2 has also exercised its contractual rights under the contract and given KFELS notice of termination as a result of Force Majeure.
The vessel construction contract provides that on termination AR2 will be entitled to a refund of the instalments paid to KFELS of USD 43.0 million plus accrued interest.
Nordic Spring is one of the two semi-submersible drilling rigs of Moss Maritime CS60 Eco MW design ordered by Awilco Drilling subsidiaries from KFELS, which both now have been terminated. In addition, a separate Awilco Drilling subsidiary has an option for one further rig of the same design.
