Keppel FELS agrees to cancel $120m contract on integration project

Singapore’s Keppel FELS has entered into a settlement agreement with an unnamed global oil and gas services firm to terminate a contract valued at approximately SGD165m ($120.2m).

The contract was for the integration and commissioning work of a newbuild asset, according to a Keppel Corp announcement.

“The termination of the aforementioned contract has been mutually agreed with the customer after taking into consideration the customer’s requirements and current market conditions,” stated Keppel Corp, parent of Keppel FELS.

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“Keppel FELS has received milestone payments for the approximately 30% of the project completed which covers its costs incurred on the project.”

Keppel Corp added that the botched contract will not have an impact on its earnings for the financial year ending 31 December 2018.

Posted 19 November 2018

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Lee Hong Liang

Asia Correspondent

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