Transocean Cancels Drillship Deliveries

Monday, September 23, 2019

Offshore drilling contractor Transocean announced on Monday that it will not take delivery of two newbuild drillships that were scheduled to be handed over from Korean builder Samsung Heavy Industries (SHI) in 2019 and 2020.

Transocean said two of its indirect, wholly-owned subsidiaries will relinquish interest and cease further payments to SHI under the build contracts for the seventh-generation ultra-deepwater drillships Ocean Rig Santorini and Ocean Rig Crete, currently under construction at SHI's Geoje shipyard. The contracts had not been guaranteed by Transocean or its affiliates, it said.

According to Transocean, the total estimated future costs for the drillships' delivery and entry into service would have been approximately $1.1 billion, including future payments to SHI under the construction contracts, as well as costs related to spares, materials, supplies and commissioning and mobilization of the rigs. 

The drillship orders were originally made by Ocean Rig, who was acquired by Transocean in $2.7 billion cash-and-stock deal in 2018.

Categories: Contracts Finance Drilling Industry News Drillships

Related Stories

RWE Taps GE, Sembcorp Marine for Sofia Offshore Wind Farm HVDC Transmission System

Simply Blue Energy Set to Develop 1GW Floating Wind Farm Off Ireland

Equinor Finds Gas and Condensate at Atlantis Well in North Sea

Current News

Noble Corp: New Rig Deals in UK, Extensions in Qatar and Suriname, Cancellation in Vietnam

Gibdock Repairs Shearwater Duo

Hermitage Offshore Services Gets a Short Breather from Creditors

Norway-linked Firms Might Bid for Petrobras' Golfinho Field Offshore Brazil

Subscribe for OE Digital E‑News