Aberdeen-based drilling contractor Awilco Drilling said on Tuesday it plans to scrap one of its two semi-submersible drilling units, as the company separately denied it is liable for more for more than $700 million being demanded by fabricator Keppel Fels over two cancelled rig orders.

Reporting quarterly results on Tuesday, Awilco revealed it plans to recycle the WilHunter unit, which is currently cold-stacked in Invergordon, Scotland.