On 5 August 2022, Keppel FELS issued notices of termination for the Relevant Contracts. The basis for termination is (a) for the TS Jasper Vessel and the LiftBoat, the failure of the respective clients to pay the outstanding amounts due and payable under each of the Relevant Contracts, and (b) for the Sapura Raiqa Vessel, the client’s conduct showing that it no longer intends to perform its remaining obligations under the Relevant Contract, including but not limited to accepting delivery of the rig and making the remaining payments.
Following the termination of the Relevant Contracts, Keppel FELS will retain all payments received to date under the Relevant Contracts, and will retain ownership of the TS Jasper Vessel and the Sapura Raiqa Vessel, including the right to sell these vessels. The construction of the LiftBoat had not and will not be commenced.
As announced in the 27 April Announcement, the TS Jasper Vessel and the Sapura Raiqa Vessel are two of the Identified Asset Co Assets to be transferred to Rigco Holding Pte. Ltd. as part of the Asset Co Transfer (as defined in the 27 April Announcement) pursuant to the Asset Co Framework Agreement (as defined in the 27 April Announcement). Please refer to the 27 April Announcement for more information on the Asset Co Transfer.
The termination of the Relevant Contracts is not expected to have any material financial impact on the earnings per share and net tangible asset per share of the Company for the current financial year.
