Ocean Rig postpones 8th gen drillship delivery till 2020

Ultra-deepwater drilling specialist Ocean Rig is delaying the delivery of an 8th generation newbuilding drillship.

The company on Friday informed it agreed with Samsung Heavy Industry to postpone the delivery of the Ocean Rig Crete, an 8th generation enhanced integrated design newbuilding drillship to September 2020.

According to the latest available rig fleet status report, the rig was to be delivered in the first quarter of 2019, however, this is no longer the case.

While the expected delivery date will be September 30, 2020, the date but may be brought forward at the option of Ocean Rig. As part of the agreement, Ocean Rig will make a $22.25 million payment to the yard within July 2018 against the remaining yard installments.

Pankaj Khanna, President and Chief Executive Officer of the Company, said the company appreciated the support of Samsung Heavy Industries and the continuing strategic partnership involving the construction of eleven drillships.

He said: “With oil prices increasing to above $70 per barrel, the terms agreed with Samsung Heavy Industries provide substantial optionality and leverage to a market that is expected to be significantly improved when the Ocean Rig Crete is delivered to us. As a reminder, the Ocean Rig Crete is an 8th generation enhanced integrated design drillship, is one of the most technologically advanced drillships in the world with a 2.8 million pound hook load, 2 BOPs and 6 mud pumps and may be equipped to drill in water depths of up to 4,000 meters.”