02 Dec 2015

Update on contractual dispute with Marco Polo

Singapore, December 1, 2015: Sembcorp Marine refers to the announcements it made on 18 November 2015 and 25 November 2015.

PPL Shipyard Pte Ltd (“PPLS”) has on 1 December 2015 served a termination notice on Marco Polo Drilling (I) Pte Ltd (“MPD”) terminating the contract after MPD failed to pay the 2nd disbursement of 10% of the contract price (US$21.43 million) by 30 November 2015 (the “2nd Disbursement”).

The 2nd Disbursement was immediately due upon the execution of the contract on 26 February 2014. MPD was initially allowed to pay the 2nd Disbursement by 11 February 2015. However on MPD’s requests, the payment of the 2nd Disbursement was deferred twice, first to no later 30 June 2015 and subsequently to no later 30 November 2015. MPD also agreed to pay interest on the 2nd Disbursement up to the date of payment.

Following the termination of the contract, PPLS demanded that MPD immediately pay the 2nd Disbursement and interest for the month of November 2015 (the “November Interest”). MPD failed to pay these sums by the stipulated deadline. MPD remains liable to pay the 2nd Disbursement as it became due at the date of execution of the contract on 26 February 2014.

MPD’s obligations under the contract including its obligation to pay the 2nd Disbursement is guaranteed by Marco Polo Marine Ltd (“MPM”) under the Parent Company Performance Guarantee (the “Guarantee”).

On 1 December 2015, PPLS demanded that MPM, as guarantor, perform MPD’s obligations in full under the Contract and pay the 2nd Disbursement and the November Interest. MPM failed to pay these sums by the stipulated deadline.

PPLS has now commenced an action against MPM in the Singapore High Court on 1 December 2015.

All of PPLS’s rights are hereby reserved.

Sembcorp Marine will make further announcements as and when necessary.

For further information, please contact:

Analysts’ enquiries
Ms Lisa Lee
Head of Investor Relations
Tel No : 65-62627107
Email : lisa.lee@sembmarine.com

Media enquiries
Mr David Wong
Head of Corporate Communications
Tel No : 65-62628036
Email : david.wong@sembmarine.com

For the complete PDF version of this release, please click here.

Top