Awilco Drilling has decided to cancel a semi-submersible rig order with rig builder Keppel due to breaches under the construction contract.
Awilco Drilling said on Monday it has notified Keppel FELS (KFELS) that it has exercised its contractual termination right under a newbuilding contract for the construction of a semi-submersible drilling rig, Nordic Winter.
Awilco said that the termination is a result of breaches under the rig construction contract.
In its 1Q 2020 report in May, Awilco said there had been slow progress on Nordic Winter in Singapore the previous month due to governmental Covid-19 restriction while progress on the second rig that Keppel is building for Awilco, the Nordic Spring, had continued as per schedule.
Awilco explained on Monday that the construction contract provides that, on termination, Awilco will be entitled to a refund of the instalments paid to KFELS of $54.7 million, plus accrued 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.
The first rig was ordered in March 2018 and the second one in March 2019 .
The delivery dates for the two rigs were set for 1Q 2021 and 2022.
In addition, separate Awilco Drilling subsidiaries have rig independent options for two additional rigs of the same design for delivery in 1Q 2023 and 2024, respectively.
Awilco Drilling’s CS60 ECO MW is a harsh environment winterised drilling semi-submersible, optimised for the Norwegian Continental Shelf and mid-water depths.