Awilco Rig 1 Pte. Ltd. has received a notice that Keppel FELS is disputing the terms of a recent newbuild contract cancellation between the firms. In addition to cancelling the contract, Awilco wants the installments paid to KFELS plus accrued interest to be refunded, according to a company statement.
The June 22 notice from Keppel purported to terminate for failure to pay the next installment due and advised that the company has started arbitration to resolve the disputes. Awilco said that its contract cancellation was valid and maintains its entitlement to the installments.
On June 8, Awilco initially notified Keppel that it had exercised its right terminate the newbuilding contract for the construction of a semi-submersible drilling rig, Nordic Winter, because of contract breaches. The contract provides that on termination AR1 will be entitled to a refund of the installments paid to KFELS of $54.7 million plus interest.
Nordic Winter is one of the two semi-submersible drilling rigs of Moss Maritime CS60 Eco MW design ordered by Awilco Drilling subsidiaries from KFELS.
To contact the author, email bertie.taylor@rigzone.com.
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