Pacific rescinded drillship order

LONDON, October 30, 2015 – Pacific Drilling has cancelled its order for construction of an ultra-deepwater drillship after South Korean shipbuilder Samsung Heavy Industries failed to meet the construction deadline, according to the offshore drilling multinational.

Pacific rescinded its contract for the drillship Pacific Zonda after Samsung Heavy did not meet the construction date slated for October 27.

Pacific ordered the $620-million vessel on January 22, 2013 with the initial delivery date scheduled for third quarter of 2015. Samsung Heavy Industries postponed the deadline to the fourth quarter of 2015

Pacific is further looking to recover its instalment payments of $181.1 million. Cancelling the contract will save an estimated $400 million in newbuild expenditures, freeing up the company to pay its debts, according to UK banking and financial company Barclays.

Image courtesy of Pacific Drilling

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