Stena Drilling cancels semi on order at SHI

JUNE 5, 2017 — Stena Drilling reports that its affiliate Stena Atlantic Ltd, an affiliate of Stena Drilling Ltd, has notified Korean shipbuilder, Samsung Heavy Industries Co Ltd (SHI), that it has exercised its right to cancel its contract for the construction of "Stena MidMAX", a dynamically positioned harsh environment semisubmersible drilling unit.

The rig was ordered in June 2013 with a delivery date in March 2016. According to Stena Drilling, SHI has, however, been unable to complete and deliver the unit within the contractually agreed timeframe.

Under the contract terms, says Stena Drilling, Stena Atlantic is entitled to reimbursement of $215.4 million in pre-delivery installments paid to SHI, plus accrued interest. Stena Atlantic also intending to pursue claims for compensation in respect of its costs incurred in relation to the project.

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