Seadrill has cancelled its contract with South Korean shipbuilding company Hyundai Heavy Industries for the construction of the semi-submersible West Mira due to delays, the offshore drilling company announced on Tuesday.

Seadrill cancels West Mira contract

Canada

OTTOWA, September 15, 2015 – Seadrill has cancelled its contract with South Korean shipbuilding company Hyundai Heavy Industries for the construction of the semi-submersible West Mira due to delays, the offshore drilling company announced on Tuesday.

The West Mira is a deepwater, semi submersible drilling unit that can be used in harsh environments. While the unit was initially ordered in the second quarter of 2012, the agreed-upon delivery time was set to be December 31, 2014.

As the drilling unit was not delivered within the timeframe specified by the contract, Seadrill cancelled its contract with Hyundai and will be able to recoup $168 million the company made in instalments.

Seadrill had intended to use the West Mira semi-submersible in its operations in Canada and Greenland with Canadian energy company Husky Oil. With the cancellation of constructing West Mira, both companies are in talks to find an alternative for drilling.

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