SINGAPORE (THE BUSINESS TIMES) - Offshore group Keppel Fels has terminated its rig contracts with an affiliate of Clearwater Capital Partners, and Fecon International.

The clients failed to collect the rigs they had ordered, even though these were ready to be delivered, and pay the outstanding instalments. They also did not provide reasonable or legal justifications for their failure, said Keppel Corp in a bourse filing late on Wednesday (April 13).

Keppel Fels, a subsidiary of Keppel Corp's offshore and marine arm, will retain the payments it has received thus far and the ownership of the rigs, including the right to sell.

The offshore company had received two jack-up orders from an affiliate of wealth management firm Clearwater Capital Partners in October 2013. One of the rigs, worth about US$200 million (S$271 million), still remains undelivered.

Keppel Fels also received an order to build three jack-up rigs worth US$650 million for rigs provider Fecon International in February 2014.

The contracts were terminated on April 13, and Keppel Fels is currently exploring other options, such as the sale and charter of these rigs.

It added that the termination of these contracts is not expected to have any material financial impact on Keppel Corp's earnings per share and net tangible asset per share for the current financial year.