Singapore’s KS Energy, via subsidiary KS Drilling, has reached an agreement with ZPMC to cancel a jack-up rig construction order signed in 2014.For illustration purposes only – KS Java Star – Image source: KS Drilling“The termination agreement was reached following discussions between KS Drilling and ZPMC. Pursuant to the Termination Agreement, KS Drilling shall not take delivery of the Rig,“ KS Energy said.“There is no material impact on the operations of the Group due to the Termination Agreement however the costs of construction relating to the Rig which were previously capitalized with a book value of US$12.6 million as at 31st March 2019 will be written off,” KS Energy said.As previously reported, Singapore Exchange in April sought an answer from KS Energy on whether the company and the group could continue to operate as a going concern, that is, if it would be able to meet its obligations as and when they fall due.The SGX query followed a report by independent auditor KPMG, which at the time highlighted that KS Energy’s current liabilities exceeded current assets, and pointed to the Group’s capital commitments of $489 million as at December 31, 2018, with “currently no financing arrangements put in place to meet the obligations.”Related: KS Energy in $4.9M rig deal as auditor casts doubt on driller’s ability to stay afloatThe $489 million commitment was related to two newbuild jack-up rigs under construction in Chinese shipyards Cosco and Shanghai Zhenhua Heavy Industry Co, (ZPMC). While the ZPMC rig order has now been canceled, it is unclear what the status of the other rig under construction at Cosco yard is.To remind, the drilling firm ordered the newbuild jack-up rigs from Cosco and Shanghai Zhenhua Heavy Industry in October 2011, and October 2014, respectively.The first rig was originally to be delivered in February 2014, and the second in September 2016. According to KS’ recent statements, after several revisions of delivery dates, the Shanghai Zhenhua Heavy Industry-built rig was to be delivered on December 31, 2018 (now canceled), and the Cosco rig on December 2019.Offshore Energy Today StaffSpotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email. Offshore Energy Today, established in 2010, is read by over 10,000 industry professionals daily. We had nearly 9 million page views in 2018, with 2.4 million new users. This makes us one of the world’s most attractive online platforms in the space of offshore oil and gas and allows our partners to get maximum exposure for their online campaigns. If you’re interested in showcasing your company, product or technology on Offshore Energy Today contact our marketing manager Mirza Duran for advertising options.
AddThis Sharing ButtonsShare to FacebookFacebookShare to TwitterTwitterShare to MoreAddThisNortheast Michigan military veterans were honored yesterday afternoon in Posen for their service to the country.The ceremony honored vets from all branches of military for their participation in the Korean war. Families from across the area filled the church to hear stories and show gratitude for the servicemen in their lives. The service concluded with a presentation of quilts to veterans in the community and a salute to fallen heroes. Veteran Gerald Donajkowski says fighting for the county is a true sacrifice that deserves high honors.“When you enter a battle zone, you have no idea what you are going to be involved in, what you are going to achieve, or what the ending will be. You go in there with apprehension, fear, not knowing of the unknown. And many that do not come back, those are the heroes. The rest of us, we made it back, but we are not the heroes. “AddThis Sharing ButtonsShare to FacebookFacebookShare to TwitterTwitterShare to MoreAddThis Tags: Korean War, Leer, Leer Lutheran, Posen, veterans, warContinue ReadingPrevious Bay City man arrested after swallowing cocaineNext Outstanding Senior of the Year award presented at Alpena Senior Center brunch