Pacific Drilling abolishes drillship deal with Samsung Heavy
- Business & Finance
Pacific Drilling, an offshore drilling contractor, has cancelled the construction contract for ultra-deepwater drillship Pacific Zonda with the South Korean shipyard, Samsung Heavy Industries (SHI).
According to the offshore driller, the contract was cancelled due to the failure of the South Korean shipyard to timely deliver a vessel that substantially meets the criteria required for completion of the vessel in accordance with the construction contract and its specifications.
Pacific Drilling made advance payments totaling approximately $181.1 million under the contract, and will be seeking a refund of the installment payments, the company said in a press release on Wednesday.
Previously, in July 2015, the delivery date for the Pacific Zonda drillship was postponed and set for the fourth quarter of 2015, although it was originally scheduled for delivery in the third quarter of 2015.
The company has a fleet of seven recently built ultra deepwater drillships capable of operating in 10,000 feet water depth and Pacific Zonda would be its eighth drillship.
Recently, another South Korean shipyard has been hit with a contract cancellation. Namely, Hyundai Heavy Industries on Tuesday received a termination of the rig construction contract from Fred. Olsen Energy for the Bollsta Dolphin semi-submersible drilling rig.
In addition, Transocean on Monday delayed the delivery contract of two newbuild drillships, the Deepwater Pontus and the Deepwater Poseidon, with Daewoo Shipbuilding & Marine Engineering Co., by a year each.
Offshore Energy Today Staff