Stena Drilling unit terminates drilling rig order at SHI

Stena Drilling’s affiliate Stena Atlantic has exercised its right to terminate a semi-submersible drilling unit construction contract with South Korea’s Samsung Heavy Industries (SHI).

The harsh environment drilling rig named Stena MidMAX was ordered by Stena Atlantic in June 2013 with planned delivery in March 2016.

“SHI has, however, been unable to complete and deliver the unit within the contractually agreed timeframe,” Stena Drilling announced.

“Under the contract terms, Stena Atlantic is entitled to reimbursement of $215.4m 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,” it added.

Posted 05 June 2017

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Lee Hong Liang

Asia Correspondent