Fredriksen terminates another drillship deal with DSME

John Fredriksen’s Northern Drilling has cancelled another resale contract with Daewoo Shipbuilding & Marine Engineering (DSME), this time for the ultra-deepwater drillship West Libra due to a delay of delivery as well as a repudiatory breach of contract.

The company’s subsidiary, West Libra Inc, has made advance payments of around $90m under the resale contract and will claim a refund of the installment paid, plus interest and damages.

“If this claim is disputed, the company will seek an award via London arbitration in accordance with industry-standard procedures and timescales,” Northern Drilling said in a statement on Monday.

Fredriksen’s rig investment unit struck a deal with South Korea’s DSME in May 2018 to buy the newbuild drillships West Aquila and West Libra for $296m each. Delivery of the vessels was scheduled for January and March 2021 or earlier.

In August, Northern Drilling scrapped the West Aquila deal, after which DSME initiated arbitration proceedings.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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