Northern Drilling Cancels Drillship Resale Contract

Tuesday, October 8, 2019

Offshore drilling contractor Northern Drilling announced it has cancelled a resale contract for the 7th generation ultra deepwater drillship West Cobalt, which had been scheduled for delivery from South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) in 2021.

Northern Drilling, which notified DSME of the cancellation on Monday, said the deal was cancelled for "various reasons including repudiatory breach of contract by DSME".

Northern Drilling has made advance payments totaling approximately $49.2 million under the contract, and will claim a refund of the installments paid, plus interests and damages, it said.

West Cobalt, previously known as Cobalt Explorer, was originally ordered by Vantage Drilling for scheduled delivery in 2015, but the order was cancelled.

Northern Drilling exercised a $350 million option to acquire the drillship in April 2019.

Categories: Contracts Legal Shipbuilding Offshore Drilling

Related Stories

Lebanon Postpones Offshore Licensing Round Again

Seafox Drops Takeover Pursuit of GMS

Gazprom's Arctic Offshore Platform Ships Its 200th Oil Cargo

Current News

New Vessel Enters Service at Formosa 1 Wind Farm

Seastar Wind Farm Connected to Elia's MOG

Qatar Petroleum in 'Largest LNG Shipbuilding Deal in History'

ONGC Moves 33 Offshore Rigs Ahead of Monsoon Season

Subscribe for OE Digital E‑News