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Seatrium’s wholly owned subsidiary, Seatrium New Energy and RigCo Holding, have entered into a settlement agreement with Awilco Drilling.
Seatrium said one of the Awilco units – Awilco Rig 2 (AR2) – will receive a $57m settlement related to an arbitration with Seatrium New Energy, formerly Keppel Fels.
AR2 won an arbitration award in November 2023 for a contract executed in March 2019 to construct a repeat mid-water semi-submersible drilling rig.
Awilco Drilling lost the first of two arbitration cases against the Singapore rig builder over two cancelled semisubmersibles. The legal dispute arose from the termination of fabrication contracts for the Nordic Winter and Nordic Spring drilling rigs – otherwise referred to by Awilco as B379 and B382.
Awilco booked the duo for construction at $425m each in 2018 and 2019, but the orders were terminated due to alleged breaches of contract. Keppel has been demanding $693m over the orders, or $424.9m and $268.9m, respectively.
The settlement sum as well as other legal fees and costs will be paid by RigCo, which has held the rig assets since Sembcorp Marine and Keppel Offshore & Marine merged into Seatrium. RigCo is also liable for all and any monies payable by Seatrium New Energy for the settlement. |
