"We'll vigorously defend," Keppel Says After FPSO Arbitration Request

Singapore-based Keppel Offshore and Marine subsidiaries have been slapped with a request for arbitration from an unnamed counterparty in relation to contracts for the delivery of Floating, Production, Storage, and Offloading (FPSO) vessels.

Keppel said this week that the unnamed claimant had withheld $11.3 million due to Keppel's subsidiaries under the FPSO engineering, procurement, and construction contracts.

Furthermore, the claimant is seeking payment from Keppel of around $31.2 million, "on the basis that the claimant is allegedly entitled to a price reduction under the EPC Contracts," Keppel said.

"[Keppel's subsidiaries], in consultation with legal advisors, deny the claimant’s alleged right to such price reductions and vehemently challenge the claimant’s right to withhold payments due to the [Keppel] as well as its supposed right to claim such price reductions."

Keppel further said it planned to vigorously defend the claim and in addition, seek remedies, including counterclaims "for the sums unduly withheld by the claimant, against the claimant to the fullest extent under the EPC Contracts and at law."

"The company will provide updates on material developments on this matter as appropriate," Keppel said without sharing any detail on the identity of the claimant.