Singapore's Seatrium said Tuesday its subsidiary PPL Shipyard would soon receive a payment of around 968 million Singaporean dollars (around USD 713,7 million) from offshore drilling company Borr Drilling.
PPL Shipyard in October 2022 reached definitive agreements with Borr Drilling to defer its receivables from Borr Drilling from 2023 to 2025.
It was then said that the deferment would result in Borr Drilling making earlier and higher amounts of interest payments and partial principal repayments to PPLS from 2022 to 2024.
Seatrium, previously known as Sembcorp Marine, said Tuesday that PPL Shipyard had received a prepayment notice on November 6, 2023 for its receivables amounting to approximately SGD968 million from Borr Drilling. The funds are expected to be received on November 8, 2023, Seatrium said.
The deferment deals were related to Borr Drilling's rig orders from October 2017 when Borr Drilling agreed to buy from PPL Shipyard nine Pacific Class 400 jack-up drilling rigs at an aggregate consideration of approximately US$1.3 billion.
Borr Drilling made an upfront down payment of about US$0.5 billion. The balance amount of approximately US$0.8 billion (“Balance Amount”) was to be paid within five years from the respective delivery dates of the rigs.
Borr Drilling took delivery of all nine rigs progressively from November 2017 to January 2019.