Samsung Heavy Industries announced on Oct. 30 that it has decided to terminate a shipbuilding contract for two drillships with Transocean, a Swiss shipping company. Drillships are vessel-type facilities for drilling oil and gas wells.
Samsung Heavy Industries terminated the shipbuilding contract on Oct. 29 after completing compensation talks on condition that it retains the US$524 million it has received in down payment and own the ships.
Greece’s Ocean League placed orders for the drillships with Samsung Heavy Industries, one in August 2013 and the other in April 2014. The orders amounted to US$1.43 billion. Samsung Heavy Industries continued to build them after Transocean took over Ocean League in 2018 but received a letter of intent to terminate the contract from Transocean in September.
“We will minimize the financial impacts of the termination of the contract by selling the drillships,” a Samsung Heavy Industries official said.
Samsung Heavy Industries has also agreed to scratch off contracts for three drillships with Pacific Drilling of the United States and Seadrill of Norway. The shipbuilder is seeking to sell off the drillships to other shipowners.