Samsung Heavy rocked by another drillship cancellation

In another hammer blow to a Korean mega yard Pacific Drilling has torn up the contract for the ultra-deepwater drillship Pacific Zonda, citing Samsung Heavy Industries’ (SHI) failure to timely deliver the vessel.

Pacific Drilling made advance payments totalling approximately $181.1m under the contract, and will be seeking a refund of the installment payments. In July, Pacific Drilling postponed delivery of the drillship from the third quarter to the final quarter of this year.

Korea’s big three yards, SHI, Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering have been rocked by many offshore cancellations in the past 12 months that has plunged the shipbuilders into the red.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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