Keppel FELS ends rig contracts with Fecon and Clearwater affiliate

The clients failed to take the rigs and pay outstanding instalments.

Keppel FELS Limited (Keppel FELS) terminated rig contracts with an affiliate of Clearwater Capital Partners, a wealth management firm, and Fecon International Corporation, which provides high specification jackup rigs.  

Under its contract on two jackup orders from an affiliate of Clearwater Capital Partners, one of the rigs worth $270.6m ($US200m) is still undelivered since the contract was announced in 2013.

Meanwhile, the other contract, which was made public in 2014, seeks to build three high-specification KFELS B Class jackup rigs worth $879m ($US650m) for Fecon International Corp. 

The notice of termination came after the clients failed to pay the outstanding instalments and take the delivered rigs, even as Keppel FELS is ready to deliver the rigs.

After the termination, Keppel FELS will retain all payments received to date under the contracts, and will retain ownership and the right to sell the rigs.

$1 = US$0.74