Keppel says Sete Brasil provisions are sufficient following judicial recovery filing

Following Sete Brasil’s filing for judicial recovery, Keppel Corp says its believes its SGD230m ($170.4m) in provisions remain sufficient.

Keppel has contracts to design and build six-semisubmersible drilling rigs for Sete Brasil valued at $4.9bn, and has not received any progress payments since November 2014.

“Keppel has stopped work on the rigs since last year and will not resume construction until payment re-commences,” it said in a statement to the Singapore Exchange.

“Keppel had made a provision of about SGD230m for these contracts in the last financial year. We continue to believe that the provisions are sufficient.”

It said it would continue to monitor and evaluate the situation.

Fellow Singapore rigbuilder Sembcorp Marine, which is building seven drillships worth $4.8bn for Sete Brasil, said earlier this week that it commenced arbitration proceedings against Sete Brasil.

Posted 27 April 2016

© Copyright 2019 Seatrade (UBM (UK) Ltd). Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade.

Marcus Hand

Editor, Seatrade Maritime News

Read more stories like this...

Sign up to the Seatrade Maritime Newsletter and get stories like this delivered to your inbox.

Subscribe Now >

ShipTech Storybox

Seatrade ShipTech Middle East

23 – 24 September 2019 | Madinat Jumeirah, Dubai

The knowledge hub of technological advancements for the shipping sector. Learn, discover and experience new technologies and optimise operational efficiencies.

View 2019 programme >