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Keppel and Baku Shipyard to terminate agreements
KEPPEL Corporation announced on Wednesday that it has agreed to terminate Management Services Agreement and Technical Services Agreement with joint venture company Baku Shipyard.
Baku Shipyard was established by Keppel Offshore & Marine (KOM), State Oil Company of Azerbaijan Republic, and Azerbaijan Investment Company.
Baku Shipyard had entered into a management services agreement with Caspian Offshore, a wholly-owned subsidiary of KOM, for Caspian Offshore to manage Baku Shipyard, and a technical services agreement with KSM Management, a wholly-owned subsidiary of KOM, for the provision of technical services by KSM to Baku Shipyard.
Following the development, startup and initial operational phases of Baku Shipyard, and in view of the updated operational requirements based on current business conditions, Baku Shipyard has agreed with Caspian Offshore and KSM to terminate the two agreements, effective June 30, 2018.
KOM continues to maintain an indirect shareholding interest of 8.5 per cent in Baku Shipyard. Management of Baku Shipyard has been handed over to State Oil Company of Azerbaijan Republic.
The terminations will not have any material impact on the net tangible assets and earnings per share of Keppel Corporation for the financial year ending Dec 31, 2018.