SINGAPORE – A consortium of six Middle Eastern and Chinese parties has canceled a $24-million rig design and engineering contract with SBI O&M Pte. Ltd.
Parent company SBI Offshore Ltd. said that the termination notice was issued “in view of the downturn in the offshore and marine industry due to the sharp fall in oil prices.”
Announced in August 2015, the group of companies contracted SBI O&M to provide design and engineering services for a shallow-water jackup to operate in water depths of up to 110 m (360 ft). The jackup was to be American Bureau of Shipping-classed, and designed specifically for the Middle Eastern and Asian markets.
According to SBI’s original statement, the companies expressed interest to build up to five rigs with work on the first to have begun in 2H 2014.
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