Awilco Rig 2 (AR2), a wholly owned subsidiary of Awilco Drilling, has notified Singapore-based shipbuilder Keppel FELS that it has exercised its contractual termination right under the newbuilding contract between Keppel FELS and AR2 for the construction of the semi-submersible drilling rig Nordic Spring.
Awilco said in a recent statement that the termination was a result of breaches under the vessel construction contract that it had signed with Keppel. At the same time, AR2 has also exercised its contractual rights under the contract and given Keppel FELS 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 installents paid to Keppel FELS of approximately US$43 million plus accrued interest.
Nordic Spring is one of the two Moss Maritime-designed semi-submersible drilling rigs ordered by Awilco Drilling subsidiaries from Keppel FELS. The contracts for both rigs have now been terminated.
In addition, a separate Awilco Drilling subsidiary has an option for one further rig of the same design.
