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Fossil Energy

about 9 years ago

Ensco defers drillship delivery

UK-based drilling contractor Ensco has agreed with a South Korean shipyard to postpone the delivery of a newbuild drillship by two years. Ensco recently entered into an amendment to the Ensco DS-10 drillship construction contract with the shipyard constructing it, Samsung Heavy Industries (SHI). Ens

1 minutes read

UK-based drilling contractor Ensco has agreed with a South Korean shipyard to postpone the delivery of a newbuild drillship by two years.

Ensco recently entered into an amendment to the Ensco DS-10 drillship construction contract with the shipyard constructing it, Samsung Heavy Industries (SHI).

Ensco informed on Monday that, under the terms of the amendment the delivery date for the drillship has been extended to March 31, 2019. However, Ensco may elect to take delivery of the drillship earlier upon giving SHI 75 days’ advance notice.

Notwithstanding the extended delivery date, SHI agreed to complete construction of the drillship by March 31, 2017.

The driller also added that payment of $75 million of the approximately $309 million unpaid balance of the purchase price for the drillship has been deferred to March 31, 2019, or such earlier date as Ensco may elect to take delivery of the drillship. The remaining $234 million of the purchase price is to be paid in January 2017.

The DP3 ultra-deepwater drillship, based on the Samsung GF12000 hull design, was ordered in 2013 with the delivery date initially scheduled for the third quarter of 2015.

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In the second quarter of 2015, the company postponed the delivery and a large milestone payment for Ensco DS-10 by 18 months to the first quarter of 2017.

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