PPL Shipyard terminates three jack-up contracts

OCTOBER 4, 2017 — Sembcorp Marine reports that wholly-owned subsidiary, PPL Shipyard Pte Ltd has terminated three contracts with Mexico’s Integradora de Servicios Petroleros Oro Negro, S.A.P.I. de C.V. and its subsidiary Oro Negro Vastus Pte. Ltd., for the construction of three jack-up rigs.

The jack-up rigs have been technically accepted by Oro Negro but delivery of the rigs has been deferred.

The termination is made under the terms of the deferment agreements between PPL Shipyard and Oro Negro.

Sembcorp Marine says the transaction is not expected to have any material impact on the net tangible assets and earnings per share of the company for the year ending December 31, 2017.