Keppel in Talks with Clients Concerning Newbuild Contracts
Keppel Offshore & Marine Limited 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 December 31, 2008.
Keppel O&M has a strong orderbook of about $12.5 billion extending through to 2012 and its contracts are cashflow positive.
- Keppel FELS Delivers Floatel Triumph, Upcoming Work at Wheatstone Field (Sep 30)
- Asia Oil, Gas Layoffs Mount as Industry Recovery Stays Elusive (Sep 08)
- Keppel FELS Delivers Jackup UMW Naga 8 to Malaysia's UMW Oil & Gas (Sep 02)
Company: Keppel Offshore & Marine Limited more info
- FPSO Armada Kraken on Track for North Sea Deployment (Aug 29)
- Bumi Armada's LNG FSU Leaving Singapore Soon to Work for EletroGas Malta (Aug 11)
- McDermott, N-KOM Signs MOU to Jointly Pursue EPCI Projects Offshore Qatar (Jul 27)