KS Drilling scraps ZPMC offshore rig order

first_imgSingapore’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.last_img read more

Can Duncan pass first test at Bechem?

first_imgThe First Capital Plus Premier League returns after a week’s break with leaders Ashgold expected to tighten their grip on the top spot when they host Sekondi Hasaacas at the Len Clay Stadium at Obuasi in a tie that swings in favour of the Soccer Miners, who are unbeaten at home this season.Mid-table Hasaacas have not been very impressive this season and will hope for a improve result at the mining town, following their 1-1 draw game against Accra Hearts of Oak at the Sekondi Stadium at Essipon.However, the club’s poor away record — they have picked just one point out of a possible 15 — when juxtaposed against Ashgold’s home makes the task a very hurculean one for the Giants of the West.On Sunday all eyes will be on Coach David Duncan as he faces his first test in charge of  Kumasi Asante Kotoko against Bechem United at the Bechem Park.The Porcupine Warriors, who managed a goalless draw with Mouloudia Club d’El Eulma of Algeria in their CAF Champions League campaign in Algiers last weekend, have no choice but to climb up the league log where they are currently second from the bottom.Kotoko have had issues both on and off the pitch and since the commencement of the season, including the unceremonious exit of their substantive coach Mas-Ud Dramani. But with the unveiling yesterday of Duncan, there are high hopes that stability will return to the club and translate into good results, beginning with victory on Sunday at the Bechem Park, which has become a slippery ground for many visiting teams. Struggling Hearts of Oak will sort it out with bottom-of-the-table B.A. United at the Sunyani Coronation Park, while sixth-placed Liberty Professionals and Accra Great Olympics battle it out at the Carl Reindorf Park at Dansoman, Tarkwa-based Medeama SC will engage New Edubiase United at their favourite T and A Park, with Chelsea and Heart of Lions settling old scores at the Berekum Golden City Park.–last_img read more