SINGAPORE – Marco Polo Marine has served notice of termination of jackup construction contract to PPL Shipyard.
The group’s subsidiary Marco Polo Drilling originally placed the $214.3-million order for the high-spec newbuild, based on PPL’s proprietary Pacific Class 400 design, in February 2014.
However, MP Drilling asserts that the yard has failed to comply with certain contractual obligations, and also claims to have found cracks on all three legs of the rig during two sets of tests.
As a result, MP Drilling says it will not take delivery of the rig and will seek a refund from PPL of the initial 10% of the contract price ($21.4 million), plus interest.
PPL parent company Sembcorp Marine has countered that MP Drilling is in repudiatory breach, and has notified MP Drilling’s lawyers accordingly. In turn, MP Drilling, through its legal counsel, has initiated a contractual dispute resolution process against PPL, as provided for under the rig construction contract, to secure the refund.
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