Brief: Keppel Corp Announces Termination Of Contract With Awilco

Awilco Drilling

04/12/2020 15:09

Dec 4 (Reuters) - Keppel Corporation Ltd: 
    * TERMINATION OF CONTRACT WITH AWILCO RIG 2 PTE LTD
    * COMMENCED ARBITRATION TO ENFORCE ITS RIGHTS AGAINST AWILCO
    * KEPPEL FELS RESERVED ALL ITS RIGHTS AGAINST AWILCO,
INCLUDING
RIGHT TO RETAIN AMOUNTS PAID BY AWILCO TO DATE, ABOUT US$43
MILLION
    * NO FURTHER IMPAIRMENT IS EXPECTED FROM TERMINATION
    * KEPPEL FELS DOES NOT EXPECT ANY REVERSAL OF REVENUE
RECOGNISED
IN RESPECT OF SECOND AWILCO CONTRACT
    * ASSESSED THAT AWILCO RIG 2 WILL BE UNABLE TO MAKE PAYMENT
OF
SECOND INSTALMENT UNDER CONTRACT WHICH IS DUE & PAYABLE IN MARCH
2021

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 (Reuters.Briefs@thomsonreuters.com)