Drillship Sold For A Mere $210 Million

Published at 01:09PM - 29/03/16

A state-of-the-art drillship, the Deepsea Metro II, has finally been sold by its creditors due to escalating unpaid debts.

The deal sees the ultra deepwater vessel sold for a mere US$210 million, well below its 2011 price tag that was north of US$860 million.

Deepsea Metro Troubles

Jointly owned by Deepsea Metro Ltd (60%) and offshore drilling contractors Odfjell Drilling (40%); the Deepsea Metro II has, like most, been suffering from the near collapse of the offshore drilling sector over the couple of years.

Since being delivered back in 2011 the vessel’s operators, Odfjell Drilling, have struggled to fill its order book despite heavily reducing its day rate- leading to mounting debts.

Deepsea Metro Stacking

With no work future work looking likely, Odfjell took the decision to stack the Metro II, offshore Curacao, Venezuela, in May 2015 in a bid to reduce running costs.

Odfjell went further, attempting to sell the Deepsea Metro II in August of last year, but in an industry where all companies are suffering the same fate no buyers came forward.

Sold For A Mere $210 Million

Servicing the US$800 million plus loan, taken out to cover the build of the vessel, eventually became too much of a burden for both partners, with unpaid instalments rumoured to be in excess of US$283 million.

The debt proved too much for financiers DVB Bank America, who eventually pulled the plug, ceasing ownership and arranging an auction for March of this year.

Today’s conformation of sale, comes off the back of an initial unsuccessful bid received during that auction.

The agreed deal sees DVB Bank America accepting US$210 million from Chalfont Shipping Ltd, well below that of its US$860 million price tag.

No comment has been given by Chalfont Shipping Ltd as to its plans for the Deepsea Metro II.