Sembcorp Marine enters settlement deal with Sete Brasil over 7 drillship contracts

Sembcorp Marine said Monday it has reached a settlement with Sete Brasil’s subsidiaries over contracts for seven drillships with a total contract price of US$5.6 billion.

Once the deal’s conditions are met, all seven contracts will be terminated and SembMarine and Sete Brasil’s subsidiaries will release each other from all claims related to the contracts, the Singapore-based rigbuilder said in a filing to SGX.

For five of the drillships, SembMarine will keep all the work, and for the other two, which have the most-advanced construction progress, the titles will be apportioned based on payments made by Sete Brasil, the filing said.

Sete Brasil has found a buyer for the subsidiaries which own the two drillships and the purchaser is expected to negotiate with SembMarine for new contracts to complete the drillships, the filing said.

Earlier Monday, Keppel had said Sete Brasil’s creditors approved Magni Partners (Bermuda)’s bid to acquire four Sete Brasil subsidiaries, including Urca and Frade.

Keppel said its subsidiary Fernvale was in talks with Magni Partners on terms to complete the two rigs under contract with Urca and Frade.

In a filing to SGX, Keppel said Keppel Offshore & Marine’s wholly owned subsidiaries Fervale and FELS Offshore entered a settlement deal with six Sete Brasil subsidiaries over the construction of six semisubmersible drilling rigs being built for them.

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