Keppel set to ‘vigorously’ defend FPSO arbitration

Keppel set to ‘vigorously’ defend FPSO arbitration

Singapore rig builder Keppel Offshore & Marine has received a request for arbitration from an unnamed counterparty relating to two engineering, procurement and construction (EPC) contracts for floating production storage and offloading units (FPSOs).

Keppel said in a statement that the claimant has withheld about $11.3 million due to Keppel O&M subsidiaries under the EPC deals. The claimant has also claimed a further payment of $31.2 million from Keppel on the basis that the claimant is entitled to a price reduction under the EPC contracts.

Keppel denies the alleged right to such price reductions and vehemently challenges the claimant's right to withhold payments due to Keppel as well as its supposed right to claim such price reductions.