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Sembmarine cancels contracts for three jack-up rigs with Oro Negro

Sembmarine cancels contracts for three jack-up rigs with Oro Negro
Sembcorp Marine’s wholly-owned PPL Shipyard has terminated three contracts with Integradora de Servicios Petroleros Oro Negro, SAPI de CV and its subsidiary Oro Negro Vastus for three jack-up rigs.

“The jack-up rigs have been technically accepted by Oro Negro but delivery of the rigs has been deferred,” Sembmarine announced.

“The termination is made pursuant to the terms of the deferment agreements between PPL Shipyard and Oro Negro,” the Singapore shipyard group added.
Oro Negro had ordered the trio of rigs at over $200m apiece from PPL Shipyard in 2013 for delivery in 2015.

Sembmarine’s core rigbuilding business has been badly hit since the collapsed of oil prices in the second half of 2014, exacerbating the lingering oversupply situation in the offshore market.

Earlier this month, PPL Shipyard also terminated contracts for two jack-up rig newbuildings with Malaysia’s Perisai Petroleum Teknologi, which failed to take delivery of the rigs ordered in 2013.

In addition, Sembmarine remains in a legal standstill with compatriot Marco Polo Marine over another newbuilding jack-up rig, with the latter unilaterally cancelling the contract and declining to take delivery of the rig, citing cracks on three legs of the rig.

Sembmarine has another standstill agreement with North Atlantic Drilling for the delivery of West Rigel semi-submersible rig extended to 6 January 2018.

Meanwhile, uncertainty continues to loom over the fate of the seven drillships ordered by bankrupt Sete Brasil. The drillships took up SGD3.1bn ($2.3bn) of Sembmarine’s net orderbook of SGD6.7bn as at 30 June 2017.

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