Seadrill confirms cancellation of last two jackups at DSIC Offshore

John Fredriksen’s Seadrill has confirmed cancellation of the last two of eight jackup rigs it had previously ordered at Dalian Shipbuilding Industry Offshore (DSIC Offshore).

The company said in a stock filing that the newbuilding contracts for the West Dione and West Mimas were terminated in February and April respectively.

Seadrill had already terminated jackups West Titan, West Proteus, West Rhea, West Hyperion, West Tethys and West Umbriel at the yard late last year.

DSIC Offshore, part of Dalian Shipbuilding Industry, the largest yard under state-run China Shipbuilding Industry Corp (CSIC), was declared bankrupt by a local court and entered into a restructuring process at the end of January at the request of creditors due to its inability to repay debts.

The offshore yard released a notice seeking new investors in May.

According to Seadrill, the company has commenced arbitration proceedings in respect of the eight newbuild jackup rigs and are claiming for repayment of installments plus interest and damages from the yard as part of DSIC Offshore’s insolvency proceedings.