Seadrill, Hyundai settle rig dispute early

Seadrill has reached a settlement with Hyundai Samho Heavy Industries on a dispute over construction of the drilling rig West Mira.

Offshore staff

HAMILTON, BermudaSeadrill has reached a settlement with Hyundai Samho Heavy Industries (HSHI) on a dispute over construction of the drilling rig West Mira.

Arbitration proceedings started in October 2015 followingcancellation of the construction contract, and had looked set to continue into the first half of 2018.

Seadrill will receive a cash payment of $170 million and will take a non-cash impairment of around $44 million to reflect the difference between the carrying value of theWest Mira receivable and the cash payment to be received. 

Asset holding company Seatankers has purchased the rig from HSHI, and will likely execute an agreement with Seadrill concerning the commercial and technical management of the rig.

03/13/2017

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