West Cobalt Inc., the 100% owned subsidiary of Northern Drilling, notified Daewoo Shipbuilding & Marine Engineering Co. (DSME) that it has cancelled the resale contract for the seventh technology extremely deepwater drillship West Cobalt attributable to varied causes together with repudiatory breach of contract by DSME.
West Cobalt Inc. has made advance funds totalling roughly $49.2 million below the contract, and can declare a refund of the instalments paid, plus pursuits and damages.
West Cobalt was ordered in 2013, because the Cobalt Explorer by the Houston primarily based offshore driller Vantage Drilling.
In August 2015, pursuant the phrases of the contract for the development and sale of the UDW drillship Cobalt Explorer with Daewoo Shipbuilding and Marine Engineering (DSME), Vantage drilling terminated the contract. The drillship was anticipated to be delivered in Q1 2016.
In May 2019, Northern Drilling introduced it has exercised the choice for the Cobalt Explorer from Daewoo Shipbuilding for a complete consideration of $350 million and versatile supply till finish Q1 2021. Cobalt Explorer is a high-spec Tier 1 UDW drilling ship being bought at near 50% low cost to the pervious proprietor’s estimated complete venture value of $660 million.
(Source: Northern Drilling/Vantage Drilling – Image: Baird Maritime)
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