Falcon Energy flags US$11.36m write-off on terminated rig order

FALCON Energy Group (FEG) expects to write off US$11.36 million paid as deposit for a jack-up drilling unit that is one among five rigs identified for sale and resale to Borr Drilling.

FEG said after Wednesday trading close that the builder of the jack-up rig, TS Topaz, has served its affiliate FTS Derricks a termination notice for the rig construction contract.

It added that it has an effective interest of 25 per cent in the rig and expects to write off a deposit of US$11.36 million paid to the builder in the financial year ending June 30, 2018.

TS Topaz is among five jack-up rigs Keppel Offshore & Marine has identified earlier this month for sale and resale to Borr Drilling in a deal valued at US$745 million.