Awilco Drilling is giving up in its fight to ditch a rig newbuilding at Keppel Corp.
The Oslo-listed company has been attempting to terminate its contract with the Singaporean shipbuilder for nearly three years for alleged contract breaches, but lost an arbitration award in April.
In a stock exchange filing on Thursday, Awilco Drilling said it will not push further.
“Although disappointed with the ruling, [the company] has determined that no appeal will be
made,” the company said in the filing.
The two sides came to loggerheads in June 2020, when Awilco Drilling began seeking $54.7m plus interest from Keppel Corp, which was building a semi-submersible drilling rig called the Nordic Winter at its Keppel FELS yard.
The Nordic Winter was one of two rigs the shipyard was expected to build for Awilco Drilling at $425m per rig.
In December 2020, Keppel Corp cancelled the second newbuilding contract, arguing Awilco Drilling would not be able to pay the second instalment for the rig.
It also said it could retain the rights to money already paid and that it could seek reimbursement for costs of the project up until termination.
The dispute ended up in arbitration, in which the arbitration tribunal sided with Keppel FELS.
Awilco Dilling said it was “disappointed” following the loss.
“[The company] is currently reviewing the award to establish if grounds exist for appeal and, if so the merits of such an appeal,” it said on 21 April.
“We will revert with further information as soon as the detailed review of the arbitration award has been completed.”