Stena cancels semisub construction contract with Samsung
June 5, 2017
Stena Atlantic Ltd. has notified Samsung Heavy Industries Co. Ltd. that it has exercised its right to cancel the contract for the construction of Stena MidMAX.
The rig was ordered in June 2013 with a delivery date in March 2016. SHI has been unable to complete and deliver the unit within the contractually agreed timeframe, according to the drilling contractor.
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.
