KUALA LUMPUR: Singapore's Sembcorp Marine unit PPL Shipyard Pte Ltd has served notices of termination to Perisai Petroleum Teknologi Bhd to end their contracts to build two jack-up drilling rigs valued at US$419.50mil (RM1.79bil).
The loss-making Perisai announced on Tuesday PPL had served the notices to Perisai's units Perisai Pacific 102 (L) Inc. over the termination to build Perisai Pacific 102 and 103 rigs.
The distressed company, which was severely impacted by the plunge in crude oil prices in recent years, said Perisai Pacific 102 had failed to take delivery of the two rigs on Aug 31.
Under the contracts signed in 2013, PPL Shipyard was to build the rigs for US$208mil and US$211.5mil respectively.
The original delivery date for the Perisai Pacific 102 was March 31, 2016 and the delivery date was further deferred to Aug 31, 2017.
As for Perisai Pacific 103, the original delivery date was July 30, 2016 and it was deferred to Aug 31, 2017 also.
For both rigs, the contract price involved an initial 20% payable upfront and the balance 80% on the delivery of the rigs.
Perisai said the purported termination of the contracts would not have any material impact to the group's financial position as the initial 20% deposit had been fully impaired as at financial period ended June 30, 2017.
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