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Seadrill cancels delayed semi-submersible rig at HHI

Seadrill cancels delayed semi-submersible rig at HHI
Seadrill has cancelled a harsh environment semi-submersible drilling rig order at Hyundai Heavy Industries (HHI) after the yard failed to meet the delivery schedule.

The West Mira was due to be delivered by 31 December 2014 and Seadrill said it had now cancelled the contract due to HHI’s inability to deliver the rig in the time frame stated in the contract.

The rig was order in May 2012 and expected to cost no more than $650m. Seadrill said it would be looking to recoup $168m in pre-delivery payment installments plus interest.

The West Mira was slated for a five-year contract with Husky Oil Operations in Canada.

“As stated in the Company's second quarter earnings report, due to the late delivery of the Unit, the Company had tentatively agreed with Husky to reduce the day-rate of the West Mira drilling contract. Seadrill remains in discussions with Husky to find an alternative solution to meet its drilling requirements,” the company said.