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.
The Central Housing and Planning Authority (CH&PA) issued a cease work notice to the Guyana Tractor and Equipment Company to terminate an unauthorised construction project that is taking place on Government reserve at Plot HN Industrial Reserve, Plantation Ruimveldt, Georgetown.The order was issued to proprietor of the equipment company, Shamnarine Narine, to cease all activities (development/construction work) with immediate effect under the Town and Country Planning Act, Chapter 20:01 of the laws of Guyana.According to the CH&PA, Narine on April 30, 2018, submitted an application to the CH&PA for full approval of planning permission to erect a two-storeyed building (25’ – 0 x 55’ -0) for commercial use as a convenience store on the ground floor and offices on the first floor and to install four fuel pumps and three underground tanks for Kerosene, Gasoline and Diesoline for use as a petrol station.On May 11, 2018, the Convenience Store and offices were recommended for approval on condition that the developer amended plans in accordance with recommendations from the Public Infrastructure Ministry indicating no access from Mandela Avenue.The CH&PA later disapproved the application after they detected that the site is not suitable for such development. Even though the approval was not given, the contractor continued construction works on the site.The disapproval of the application came after residents of the Shirley Field-Ridley Square, South Ruimveldt, in a petition to the agency rejected the construction of the gas station and the convenience store and offices and also since it cannot be accessed from Mandela Avenue, which is the main thoroughfare.The notice was signed for and received by an excavator operator, who is employed by Narine and working on the site.Additionally, the proposed means of access (Plumbaggo Street and the roadway) are minor streets that cannot serve as means of ingress and egress since they are not suitable and inappropriate, the CH&PA said on Saturday.Further, according to the agency, it is concerned with the destruction that was caused to the road and road shoulders by heavy-duty equipment used by Narine to drive piles into the ground.