Keppel Corp has confirmed that it cancelled a second drilling rig newbuilding contract from Norwegian owner Awilco Drilling.

Meanwhile, Norwegian financial news daily Finansavisen reports that two companies are locked into a dispute that is expected to land in arbitration.

Keppel said it had assessed that Awilco Drilling would “not be able to make payment of the second instalment” which is due in March 2021.

Keppel Corp CEO Loh Chin Hua.