Marco Polo Marine Terminates Sembcorp Marine Rig Construction Contract

Marco Polo Marine has announced the termination of a US$214.3 million contract for a jack-up rig under construction at Sembcorp Marine’s 85 percent-owned PPL Shipyard.

The group decided on the termination following PPL Shipyard’s failure to comply with certain of its material contractual obligations. In view of the termination, the group will not be taking delivery of the new rig and will be seeking a refund of 10 percent of the contract price (approximately US$21.4 million). In a separate announcement, Sembcorp Marine has announced the disagreement with the allegations and will regard the termination as a repudiatory breach of contract, and will terminate the contract and claims amounts due under the contract against Marco Polo Marine.

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