Photo by Maria Lupan for Unsplash

Keppel FELS gets arbitral award to enforce rights against Awilco

The company failed to pay an instalment per contract.

Keppel FELS Limited, a Sembcorp Marine Limited-owned subsidiary, received an arbitral award regarding an arbitration commenced in June 2022, enforcing its rights against Awilco Rig 1 Pte Ltd after it failed to pay an instalment on time as required by the signed US$425m (SG$567.80m) contract for the construction of a mid-water semisubmersible drilling rig.

Keppel FELS issued a notice of termination to Awilco in June 2022 due to the payment default.

The company then further referred to its Circular dated 31 January 2023 on the Proposed Combination with Keppel Offshore and Marine Ltd, transferring the Rig to Asset Co as part of the transaction before the Combination.

READ MORE: More large rig orders for SG shipyards expected next year

"Under the terms of the Asset Co Transaction, any damages received by Keppel FELS in the Award will be befitting of Asset Co.," Sembcorp Marine said in a statement.

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