Keppel FELS has revealed that a US $1.23 Bn deal to build two semisubmersible drilling rigs for Ukraine state gas company Naftogaz has been ditched.

The Singapore shipyard only announced the rig building deal in December last year, but says now that the conditional contract between it and Naftogaz “will not be taking effect as certain conditions within the timeline set were not met”.

It added that it would continue to seek opportunities where it can support Naftogaz in its E&P activities. The operator had intended to use the rigs to drill wells in its sector of the Black Sea, in both shallow and deep waters.