Offshore driller Pacific Drilling has announced that an arbitration tribunal in London has ordered the company to pay $320m to Samsung Heavy Industries for a drillship order cancellation.
Pacific Drilling ordered the Pacific Zonda drillship at Samsung in 2013, with the original scheduled delivery in 2015. The company cancelled the order in 2015, claiming the shipyard failed to deliver the vessel in accordance with the specifications in the construction contract. The two companies had since entered into an arbitration process.
Pacific Drilling are currently considering whether to seek permission to appeal and are exploring all available legal remedies.
“The company is surprised and disappointed by the tribunal’s decision. However, this outcome will not impact our commitment and ability to continue to deliver to our customers the highest level of deepwater drilling services in our industry,” said Bernie Wolford, CEO of Pacific Drilling.