Mainboard-listed yard group, Sembcorp Marine's unit PPL Shipyard has terminated two contracts worth about US$400 million with the subsidiaries of Malaysia's Perisai Petroleum Teknologi Bhd.
The termination of the contracts for the construction of two jack-up rigs comes following the expiry of the existing deferment agreements, it said in a statement on Thursday.
The jack-up rigs are drilling rigs that were built based on the PPL Pacific Class 400 design. They have efficient drilling equipment, offline handling features and simultaneous operations support.
These high specification rigs are capable of operating in deeper waters of 400 feet and drillinghigh pressure and high temperature wells to depths of 30,000 feet, the company said.
Malaysia-based upstream oil & gas service provider Perisai ordered the two rigs from PPL Shipyard in 2013 and deliveries were originally scheduled in 2015. Perisai has deferred the delivery of the two rigs multiple times.
In June, PPL Shipyard agreed to extend the delivery date for both rigs to August 31 at the latest.
Sembcorp Marine said it continues to actively market the rigs to prospective buyers who have expressed interest.
Shares in Sembcorp Marine closed unchanged at S$1.59 on the Singapore Exchange on Thursday. The stock has gained 15 percent so far this year.
