Stena Drilling cancels newbuilding construction contract for semi-sub Stena MidMAX
Stena Atlantic Ltd, an affiliate of Stena Drilling Ltd, has today notified the Korean shipbuilder, Samsung Heavy Industries Co Ltd (SHI), that it has exercised its right to cancel their 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. SHI has, however, been unable to complete and deliver the unit within the contractually agreed timeframe.
Under the contract terms, Stena Atlantic is entitled to reimbursement of $215.4 million in pre-delivery instalments paid to SHI, plus accrued interest. Stena Atlantic is also intending to pursue claims for compensation in respect of its costs incurred in relation to the project.