Keppel Confirms Rowan Wants Review Of Payment Terms On 4 Rigs

Singapore-based rig builder Keppel Corp. (BN4.SG) Friday said that Houston contract drilling services provider Rowan Cos. (RDC) has sought a review on the payment terms for the four rigs it had ordered in 2007.

Keppel's confirmation comes after Rowan in a filing to the U.S. Securities and Exchange Commission Monday said that it has asked Keppel to suspend activity on the fourth rig pending a decision in the coming months about whether to go forward with that structure.

Rowan had placed the rig orders with Keppel AmFELS, a unit of Keppel Corp.

"Keppel AmFELS has no obligation to revise its contractual terms on the orders from Rowan and will only accede to requests that do not adversely impact its financial position," Keppel's spokesperson said in an e-mail response to queries.

The total value of Rowan's four rigs under construction is US$780 million.

-By P.R. Venkat, Dow Jones Newswires; [phone]; [e-mail]

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