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Awilco Drilling stated Monday that it has terminated its vessel construction contract with KFELS for the Nordic Spring. Awilco Rig 2 Pte. Ltd (AR2) has terminated its vessel construction contract with Keppel FELS Limited (KFELS) for the newbuild semi-submersible drilling rig Nordic Spring, AR2 parent company Awilco Drilling PLC (OTCMKTS: AWLCF) reported Monday. AR2 exercised its contractual termination right “as a result of breaches under the Vessel Construction Contract,” Awilco noted in a written statement. The Aberdeen, U.K.-based North Sea drilling contractor added that AR2 has given KFELS notice of termination as a result of force majeure. Citing the terms of the contract, Awilco stated that AR2 will be entitled to a refund from KFELS of US$43 million plus accrued interest. ....
Awilco Drilling PLC: Nordic Spring – Termination of Vessel Construction Contract Awilco Rig 2 Pte. Ltd. (“AR2”), a wholly owned subsidiary of Awilco Drilling PLC (“Awilco Drilling”), has notified Keppel FELS Limited (“KFELS”) that it has exercised its contractual termination right under the newbuilding contract between KFELS and AR2 for the construction of a semi-submersible drilling rig, Nordic Spring, as a result of breaches under the Vessel Construction Contract. At the same time, AR2 has also exercised its contractual rights under the contract and given KFELS notice of termination as a result of Force Majeure. The vessel construction contract provides that on termination AR2 will be entitled to a refund of the instalments paid to KFELS of USD 43.0 million plus accrued interest. ....