Samsung Heavy sells drilling rig for $500 million

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Samsung Heavy sells drilling rig for $500 million

Published: 29 Jan. 2018, 20:26

Samsung Heavy Industries, a major shipbuilder, said Monday that it has sold an offshore facility to a European company for around $500 million.

Samsung Heavy said in a regulatory filing that it is set to deliver the semi-submersible drilling rig to the company by the end of this year, though it did not identify the European buyer.

A semi-submersible drilling rig is specially designed to be used in a number of specific offshore roles, such as offshore drilling rigs, oil production platforms and heavy lift cranes.

In 2013, Samsung Heavy clinched a $720 million deal to build the semi-submersible drilling rig from Stena, a Swedish firm.

Samsung Heavy received 215 million in advance payment for the project, but Stena’s frequent changes in the rig’s design and excessive demands delayed the project, according to Samsung Heavy.

In June 2017, Samsung Heavy asked the Swedish firm to cover increased cost and to extend the deadline for the delivery of the drilling rig.

Stena unilaterally canceled the order, citing Samsung Heavy’s failure to fulfill the contract, Samsung said.

Samsung Heavy and Stena have been in talks to resolve the dispute over the advance payment.

[Yonhap]