Sigma Terminates Drillship Construction Contract with STX
Vantage Drilling Company (“Vantage” or the “Company”) announced that Sigma Drilling Ltd. (“Sigma”) has terminated the construction contract for a new, high-specification drillship with STX Offshore & Shipbuilding Co. Ltd.(STX).
STX had notified Sigma that it was suspending activity on the project on August 29, 2013 due to efforts to restructure their operations and finances. Since that time, the parties have negotiated to move the project to a mutually agreed shipyard. Due to a lack of progress in these negotiations, Sigma sent STX a termination notice dated January 8, 2014. In conjunction with the termination, Sigma has informed STX that it will claim a refund of its payments made to the shipyard plus interest, which is protected by a refund guarantee provided by an independent financial institution.
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of three ultra-deepwater drillships, the Platinum Explorer, the Titanium Explorer and the Tungsten Explorer, as well as an additional ultra-deepwater drillship, the Cobalt Explorer, now under construction, and four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs. Vantage’s primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of seven owned drilling units, Vantage is a provider of offshore contract drilling services globally to major, national and large independent oil and natural gas companies.
Press Release, January 13, 2014; Image: ABB