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Keppel Corp axes $280m deal

Keppel Corp axes $280m deal

Singapore: Keppel Corp has terminated a 140 million euro (S$279.8 million) contract to build a vessel for a Norwegian firm that has gone bankrupt.

The termination announced yesterday is the final stage of a process that began in July when its wholly-owned Dutch yard Keppel Verolme stopped work on the project for MPU Offshore Lift.

Keppel Verolme has now secured the necessary rights and endorsements from third parties to dismantle and dispose of the vessel's mega concrete hull, which has no commercial value.

Keppel secured the 140 million euro deal from MPU in late 2006 to build an innovative 'first-in-the-world' heavy lifter of its class. The vessels are used to dismantle offshore structures like oil rigs that have been decommissioned. Delivery was scheduled for early next year. [17/12/08]