Marco Polo, PPL in dispute over jackup rig delivery

Offshore staff

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.


Share your news with Offshore at

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...