George Economou’s Ocean Rig has reached an agreement with South Korean yard Samsung Heavy Industries to delay the delivery of newbuild drillship Ocean Rig Crete to September 2020.
Ocean Rig will make a $22.25m payment to the yard this month against the remaining yard installments, and has the option to bring delivery forward at any time.
Pankaj Khanna, president and CEO of Ocean Rig, commented: “We are pleased to have reached an agreement to postpone the delivery of the Ocean Rig Crete to September 2020. We appreciate the support of Samsung Heavy Industries and the continuing strategic partnership involving the construction of eleven drillships. With oil prices increasing to above $70 per barrel, the terms agreed with Samsung Heavy Industries provide substantial optionality and leverage to a market that is expected to be significantly improved when the Ocean Rig Crete is delivered to us.”