Marco Polo asks money back from Sembcorp Marine
- Exploration & Production
Marco Polo Marine’s subsidiary, Marco Polo Drilling (MP Drilling), on Tuesday initiated the contractual dispute process against Sembcorp Marine’s subsidiary, PPL Shipyard, seeking refund of payments made for a rig construction.
Namely, MP Drilling last week cancelled a newbuild rig construction contract with PPL due to, as the company said, PPL’s failure to comply with certain of its material contractual obligations.
The two companies entered into a jack-up rig construction contract worth $214.3 million in February 2014 and the rig was scheduled for delivery in the fourth quarter of 2015.
MP Drilling last week refused to take the delivery of the rig asking for a refund from PPL of the initial amount of 10% of the contract price (approximately $21.4 million) previously made to PPL together with interest.
According to MP Drilling, following the notice of termination of the rig construction contract, PPL has not acceded to its demand for, among others, the refund of the initial payment. As a consequance, MP Drilling has initiated the contractual dispute resolution process against PPL to seek the refund of the initial payment.
Offshore Energy Today Staff