US-based drilling contractor Pacific Drilling has cancelled a contract with Samsung Heavy Industries (SHI) for the ultra-deepwater drillship Pacific Zonda, citing failure to timely deliver the vessel.
The ship, Pacific Zonda, was scheduled to be delivered to Pacific Drilling in June but now SHI is planning to deliver the ship on Tuesday, and due to the delay, Pacific Drilling has refused to accept the delivery.
Pacific Zonda is capable of operating in 12,000 ft water depth and, and it is equipped for 35,000 ft drilling depth, can accommodate up to 200 members, has two each Active Heave Drawworks and TDX-1250 Top Drives, and Seven HP pumps 7,500psi.
Under the contract, Pacific Drilling gave $181.1m in advance to SHI, which it is now seeking back.
SHI posted 1.15 trillion won ($1.01bn) of net loss in the second quarter and it said that its third-quarter earnings have also slumped 71% on-year to a net profit of 51 billion, and the latest cancellation will add fuel to the fire.
The Korean Herald cited an unnamed source familiar with the matter as saying: "The date of delivery had been rearranged to the (October) 27th as there had been some problems, but we recently received an unexpected call that they were calling off the order."