SEMBCORP Marine Ltd, the world's second-biggest maker of oil rigs, terminated a US$423 million (S$632 million) contract with a PetroMena ASA unit, saying the customer missed the final payment for a semi-submersible rig, reported Bloomberg news.

Sembcorp Marine plans to sell the rig and is 'confident that it will be able to recover all outstanding amounts,' the company said in a statement to the Singapore stock exchange on Wednesday. The amount of the final payment was not given.

A 66 per cent slump in crude oil prices from a peak in July amid the global credit crunch has prompted some rig operators to cancel orders with shipyards or delay payments.

Oil producers are cutting capital budgets 17 percent this year after demand slowed, according to Tristone Capital Inc.

Sembcorp Marine's Jurong Shipyard Pte won the order from PetroRig I Pte, a wholly-owned unit of Norway?s PetroMena, in October 2005.

PetroMena has had difficulties financing some rig construction orders, according to Vytautau Bagdonas, an analyst at Orion Securities in a Feb 25 note.

Sembcorp Marine gained 2 per cent to close the morning session at S$2.03 in Singapore before the statement about PetroMena was issued. The stock has gained 21 per cent this year, compared with the 3.8 per cent rise in the Straits Times Index.

PetroMena's shares have slumped 78 per cent this year.

Sembcorp Marine on April 14 said it is seeking more information on PetroProd Ltd, which was placed under provincial liquidation. Sembcorp Marine won a contract from the Singapore-based oil-services provider to build a $442 million jack-up rig in 2007 and has another order to convert a tanker into a floating production and storage unit.