Zhoushan Changhong takes in six Transocean rigs for demolition

The Chinese shipbuilder and ship recycler has paid $17.9m progressively since June for the six rigs, according to a company statement on its website.

Zhoushan Changhong said Transocean decided to decommission the rigs due to a lack of activities since the fall in global oil prices last year. Charter rates for rigs have fallen while operating costs have increased, leading to several rig operators choosing to scrap their older units.

In July, Maersk Drilling also sent a 1984-built rig to Zhoushan Changhong for recycling. The price of the deal was not disclosed.