Keppel FELS reaches settlement on Parden jack-up

DECEMBER 30, 2016 — Singapore’s Keppel FELS has reached an agreement on the sale of a KFELS B Class design jack-up originally ordered back in August 2015 by Uruguay-based Parden Holding for fourth quarter 2015 delivery (see earlier story) .

Today, Keppel Corporation Limited said that, following Parden’s failure to take delivery of the jack-up rig and make payment for the balance 80% of the contract value, KFELS has entered into a settlement agreement with the guarantor of Parden’s obligations under the construction contract.

The settlement provides for the concurrent execution of a sale contract with 361 Projects Pte. Ltd., which is an associate of the guarantor, for the purchase of the jack-up rig at a price equivalent to the balance contract value of the construction contract.

Under the terms of the sale contract, the rig is scheduled for delivery from the shipyard in fourth quarter 2017. Pursuant to the sale contract, a replacement corporate guarantee will be issued by the guarantor to secure the purchaser’s obligations under the sale contract.