Seatrium to pay $77m in settlement to Awilco

The two parties have been in dispute since 2020.

Seatrium’s wholly-owned subsidiary Seatrium New Energy, alongside RigCo Holding, have entered into a settlement agreement with UK-based offshore drilling contractor Awilco Drilling amounting to US$57m ($77m).

The parties have agreed that Awilco’s Awilco Rig 2 Pte unit will receive a settlement sum of US$57m as the outcome of two arbitrations with Seatrium New Energy, formerly Keppel FELS.

According to the announcement on 20 June, the first arbitration award regarding the B379 newbuild contract was made in favour of Seatrium New Energy.

Awilco won the second arbitration ruling regarding the terminated newbuilding contract for the construction of mid-water semi-submersible drilling rig, B382.

The parties agreed on the sum of US$57 million as the full and final settlement of the two arbitration rulings, which includes all claims, disputes and amounts arising from the terminated contracts.

In 2018 and 2019, Keppel FELS and Awilco entered into separate deals for the construction of two rigs, including the construction of a second mid-water semi-submersible drilling rig worth $425m.

In 2020, the parties have been in dispute after Awilco moved to terminate both deals due to alleged breaches of contracts. Keppel FELS had denied the allegations.

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