Awilco Drilling PLC reports that a wholly owned subsidiary, AR2, has notified shipbuilder Keppel FELS Limited that it has exercised its contractual termination right under the newbuilding contract for the construction of a semi-submersible drilling rig, the 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.
Awilco says that the vessel construction contract provides that on termination, it will be entitled to a refund of the installments paid to KFELS of US $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 under contracts that have now both been terminated. In addition, a separate Awilco Drilling subsidiary has an option for one further rig of the same design.