Keppel enters settlement agreement to terminate integration contract

Keppel Corp. said on Friday that Keppel FELS entered a settlement agreement with a global oil and gas services company to terminate a contract for integration and commissioning work of a newbuild asset with a value of around S$165 million.

The contract termination was mutually agreed with the customer after considering the customer’s requirements and market conditions, Keppel said in a filing to SGX after the market close on Friday.

Keppel FELS received milestone payments for the around 30 percent of the contract it completed, which covers its costs for the project, it said.

The termination isn’t expected to result in a writedown or to have a material impact on Keppel’s net tangible assets or earnings per share, the filing said.

Keppel FELS is a wholly owned subsidiary of Keppel Offshore & Marine.