Keppel hit by cancellations

Keppel FELS Limited and Scorpion Offshore have agreed to terminate the $405 million rig contract on mutually acceptable terms. Scorpion Offshore is working closely with Keppel FELS in the latter?s exploratory discussions with interested third parties to take over the building of the semisubmersible. The outcome of these discussions are highly uncertain.

Keppel Singmarine and Lewek Shipping are currently working towards an amicable mutual termination of their contract for a multi-functional support vessel and this is expected to be finalised shortly.

Excluding the Scorpion and Lewek contracts, Keppel O&M has a strong orderbook of about S$10.8 billion extending through to 2012.