Keppel resells jack-up rig after Parden’s failure to pay for it

  • Exploration & Production

Singapore’s rig builder Keppel has decided to resell a jack-up rig after the original buyer failed to take delivery of the rig and pay for it. 

The jack-up rig of a KFELS B Class was originally meant for the Uruguay-based Parden Holdings.

Parden ordered the jack-up rig from Keppel FELS in August 2013, in a $206 million deal. The rig, ordered for operations offshore Mexico, was scheduled for delivery in 4Q 2015.

However, Keppel informed on Friday, December 30 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 discussed with the guarantor of Parden’s obligations under the construction contract and entered into a settlement agreement with the guarantor.

According to Keppel, the settlement agreement 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 in 4Q 2017.

The rig builder also added that, 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.

Offshore Energy Today Staff

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