Luxembourg-based Pacific Drilling (NYSE:PACD) says it has rescinded a construction contract for the ultra-deepwater drillship Pacific Zonda at Samsung Heavy Industries over the shipyards failure to deliver the rig on time.
Pacific Drilling says it exercised its right to cancel order because the delayed delivery fails to meet the criteria set out in the construction contract signed in January 2013. The contract provided for a delivery date of March 31, 2015.
The company says it made advance payments totaling approximately $181.1 million under the contract, and will be seeking a refund of the installment payments from SHI.
Pacific Drilling’s fleet consists of seven drillships. Of the seven, five are currently contracted and two are available.
According to Pacific Drilling, Pacific Zonda is an upgraded Dual Load Path Samsung 12,000 design dynamically-positioned Dual Gradient capable drillship. The drillship will be able to operate in moderate environments and water depths up to 3,657 m (12,000 ft) using 18¾” BOP and 21” OD marine drilling riser.