Pacific Drilling ordered to pay $320m in Samsung Heavy dispute

Pacific Drilling ordered to pay $320m in Samsung Heavy dispute

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.

 

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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