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Keppel in talks with Seadrill, Scorpion and Lewek on their contracts


Published Dec 1, 2008
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Keppel Offshore & Marine

Keppel Offshore & Marine Limited (Keppel O&M) has received indications from Seadrill Limited, Scorpion Offshore Ltd, and Lewek Shipping Pte Ltd that they are reviewing their options on their newbuilding contracts that were signed in the middle of this year.

The contracts under review are for a semisubmersible for Scorpion Offshore, two jackup rigs for Seadrill and a Multi-Functional Support Vessel for Lewek Shipping.

Keppel O&M is in talks with them to arrive at mutually acceptable arrangements for these contracts.

Construction work has not started on these projects, for which Keppel O&M has received downpayments.

If these contracts are cancelled, the cancellations are not expected to have any material impact on the net tangible assets or earnings per share of Keppel Corporation for the financial year ending 31 December 2008.

Tags: Keppel Offshore & Marine Limited, Seadrill



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