John Fredriksen’s Northern Drilling has cancelled a resale contract with Daewoo Shipbuilding & Marine Engineering (DSME) for the ultra deepwater drillship West Aquila due to a delay of delivery as well as a repudiatory breach of contract.
The company’s subsidiary, West Aquila Inc, has made advance payments of around $90m under the 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 Tuesday.
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.