Offshore drilling rig operator Pacific Drilling is working to appeal a recent ruling according to which the company must pay $320 million to rig builder Samsung Heavy Industries.
As previously reported by OEDigital, a London arbitration tribunal in January order Pacific Drilling to pay up for a 2015 drillship order cancellation.
Pacific Drilling had ordered the Pacific Zonda ultra-deepwater drillship from Samsung in 2013, with the expected delivery in early 2015.
The offshore drilling contractor then in July 2015 decided to delay the rig delivery for the fourth quarter for 2015, only for it to cancel the order in October 2015, citing the failure of Samsung Heavy Industries "to timely deliver a vessel that substantially meets the criteria required for completion of the vessel in accordance with the construction contract and its specifications."
Samsung then initiated an arbitration proceeding and won the case last month. Pacific at the time said it was surprised and disappointed by the decision, adding that it was looking at available legal remedies, but that the "the High Court in London may grant permission to appeal are limited"
Applying for the right to appeal
Come Wednesday, February 11, Pacific Drilling said it had filed an application with the High Court in London for leave to appeal the January ruling.
Under the rules governing the arbitration proceedings, Pacific Drilling's subsidiaries related to the drillship deal have no automatic right to appeal.
The company reiterated that the grounds for the grant of permission to appeal were limited, adding that there can be no assurance that permission to appeal will be granted, or if granted, that the appeal will be successful.
The Pacific Zonda is an upgraded Dual Load Path Samsung 12000 design dynamically-positioned, Dual Gradient capable, drillship operating in moderate environments and water depths up to 3,657 m (12,000 ft) using 183/4n BOP and 21″ OD marine drilling riser. The vessel can accommodate 200 persons. The vessel, according to Marine Traffic, is currently located near the Samsung yard in Geoje, South Korea.
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