Samsung has a buyer for Stena MidMax drilling rig

Business & Finance

Samsung Heavy Industries has found a buyer for a semi-submersible drilling rig previously ordered by Stena Drilling. Stena had ordered the Stena MidMAX rig in 2013, however, it canceled the order in 2017

The UK-based driller scrapped the rig order citing Samsung’s inability to complete and deliver the unit within the contractually agreed timeframe. The rig was ordered by Stena in June 2013 with a delivery date in March 2016. The reported value at the time of the order was around $720 million.

Samsung on Monday said it signed a contract to deliver the rig to the new owner for around $500 million. The company did not say who the new client was, only describing it as a “European shipowner.” The rig is expected to be delivered by the end of the year.

As previously reported, while canceling the order, Stena requested a reimbursement of the $215 million pre-delivery installments it had given Samsung for the rig construction.

Samsung, in turn, initiated the arbitration process against Stena, while at the same time pursuing a third party sale for the dynamically positioned harsh-environment semi-submersible drilling rig.

Offshore Energy Today Staff