Aberdeen-based Stena Drilling says it has canceled a newbuilding contract for a semi-submersible drilling rig it had on order at South Korea’s Samsung Heavy Industries.
The company said Monday its affiliate Stena Atlantic had notified the shipbuilder that it has decided to exercise its right to cancel the contract for the construction of the Stena MidMAX, a dynamically positioned harsh environment semi-submersible drilling rig.
The rig was ordered in June 2013 with a delivery date originally planned for March 2016. “SHI has, however, been unable to complete and deliver the unit within the contractually agreed timeframe,” Stena Drilling said in a press release.
The company added that under the contract terms, Stena Atlantic is entitled to reimbursement of $215.4 million in pre-delivery installments paid to Samsung Heavy Industries, plus accrued interest. Stena Atlantic is also intending to pursue claims for compensation in respect of its costs incurred in relation to the project.