Keppel FELS say that the contract with Naftogaz of Ukraine was cancelled because certain conditions within the timeline were not met.
On 4 December 2012 Keppel FELS had announced the signing of a conditional contract between them and Ukraine’s National Joint-Stock Company, “Naftogaz of Ukraine” (Naftogaz), to construct two semisubmersible drilling rigs, value approximately US$1.2-billion. This followed an earlier announcement made on 21 November 2012 that Keppel FELS had been selected as winner of the tender to construct the two semi-submersbles.
The rigs were to have been built to Keppel FELS’ proprietary DSSTM 38U design, customised for the Black Sea environment. The harsh weather conditions there include extreme freezing temperatures, storms with strong winds and heavy seas.