UK offshore driller Stena Drilling has cancelled a drilling rig order it had with South Korea’s Samsung Heavy Industries.
The company’s affiliate Stena Atlantic Ltd has notified the Korean shipbuilder, Samsung Heavy Industries Co Ltd (SHI), that it has exercised its right to cancel their contract for the construction of “Stena MidMAX”, a dynamically positioned harsh environment semi-submersible drilling unit.
The rig was ordered in June 2013 with a delivery date in March 2016. The reported value at the time of the order was $727 million.
According to Stena, Samsung Heavy Industries has, however, been unable to complete and deliver the unit within the contractually agreed timeframe.
“Under the contract terms, Stena Atlantic is entitled to reimbursement of $215.4 million in pre-delivery instalments paid to SHI, plus accrued interest. Stena Atlantic is also intending to pursue claims for compensation in respect of its costs incurred in relation to the project,” the driller said.