Marco Polo Terminates Rig Contract with Sembmarine
By Aiswarya Lakshmi
Tuesday, November 17, 2015
Marco Polo Marine has unilaterally terminated a rig building order worth US$214.3 million from a subsidiary of Sembcorp Marine.
Sembcorp Marine on early Wednesday morning said its subsidiary, PPL Shipyard, will regard the termination by Marco Polo Drilling (I) of the US$214.3 million newbuild contract as "repudiatory breach of the contract".
The response comes after Marco Polo Marine, of which Marco Polo Drilling is an indirect wholly-owned subsidiary, on Tuesday said in a filing to the Singapore Exchange that it will terminate the contract for a jack-up rig under construction at PPL Shipyard.
Sembcorp Marine refers to the announcement by Marco Polo Marine Ltd in respect of the termination by Marco Polo Drilling (I) Pte. Ltd. of Rig Construction Contract with PPL Shipyard Pte Ltd for the construction of a High Specification Jack-up rig on 17 November 2015.
PPL Shipyard has not received any notice of termination of the Construction Contract at the time they learnt of the announcement.
PPL Shipyard disagrees with the allegations in the announcement and will regard this as repudiatory breach of the contract, and will terminate the Contract and claim amounts due under the Contract against MP Drilling and its guarantor Marco Polo Marine Ltd.
PPL Shipyard will take the necessary steps to enforce its rights and will provide the update when required.