Stena Atlantic, an affiliate of Stena Drilling Ltd, has today notified the Korean shipbuilder, Samsung Heavy Industries (SHI), that it has exercised its right to cancel their contract for the construction of Stena MidMAX, a Moss Maritime CS-60 dynamically positioned harsh environment semisubmersible drilling unit.
The rig was ordered in June 2013 with a delivery date in March 2016. SHI has, however, been unable to complete and deliver the unit within the contractually agreed timeframe.
Under the contract terms, Stena Atlantic is entitled to reimbursement of $215.4 million in pre-delivery instalments paid to SHI, plus accrued interest. Stena Atlantic is also intending to pursue claims for compensation in respect of its costs incurred in relation to the project.
Stena Drilling operates a fleet of seven offshore drilling units, three mid-water semi-submersibles and four ultra-deepwater drillships. The drillships Stena Carron and Stena DrillMax are presently active offshore Guyana and Senegal respectively, the other units are reported idle. (Source: Stena Drilling)