Seadrill Gives Up Waiting For West Mira Drilling Rig

Published at 05:08PM - 15/09/15

Offshore drilling contractors, Seadrill, have walked away from their half constructed West Mira Semisubmersible drilling rig, after continued delays by the shipyard.

The West Mira was designed to be a sixth generation ultra-deepwater semisubmersible drilling rig, capable of working in harsh environments.

The offshore rig is in construction at the South Korean Hyundai Heavy Industries Co Ltd (HHI) shipyard.

Shipyard Delays

Seadrill have said the contract for the build was signed with HHI back in the second quarter of 2012, with the delivery date scheduled for 31st December 2014.

However, almost a year later, the offshore drilling rig is still not ready to leave the South Korean shipyard and start work.

Missed Contracts

According to a press release from Seadrill, the delays are now causing problems not only for them, but also offshore operators the Mira drilling rig has been contract to.

Seadrill stated that a 5 year offshore drilling contract had been signed back in 2012 with Canadian based Husky Energy, for drilling work offshore Canada and Greenland, that should have started in the Q2 2015.

As a sweetener for the delay, Seadrill said it had ‘tentatively agreed’ to reduce the day rate of the Mira for Huskey at the start of the year, clearly believing that the delivery of the semisub was imminent.

However, fast-forward almost a year, and it looks like Seadrill have evidently given up.

In a statement, the offshore drilling firm said, ‘Seadrill remains in discussions with Husky to find an alternative solution to meet its drilling requirements.’

Seadrill is now looking to recoup US$168 million of pre-delivery instalments it made to HHI, plus interest.

Under the contract terms, Seadrill has the ability to recoup the $168 million in pre-delivery instalments to the Shipyard, plus accrued interest.