Samsung Heavy Industries Inks $245 Million Deal To Resell Drillship To Transocean

Samsung Heavy Industries Co. has signed a deal worth US$245 million with a European firm to sell the drillship it could not deliver following a botched deal. The drillship that was sold off to the European company is one of two drillships that offshore driller Transocean Ltd. had relinquished without a reason in 2019 September.

The order for two drillships was placed by Ocean Rig UDW Inc. in consecutive years – 2013 and 2014. In 2018, the company was acquired by Transocean. In June, Samsung Heavy signed a deal to lease the other drillship of the two to Saipem, an Italian oilfield services company for two years, not to mention the deal value.

The deal will take effect from this year’s November to 2023 August. It gives Saipem an option to buy the leased ship. Samsung Heavy stated that the drillship delivery will be done by 31 March 2023.

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But the European company has to confirm the day of drillship delivery by 5 October 2022, the shipbuilder mentioned during a regulatory filing. If otherwise, Samsung Heavy can choose to cancel the deal without returning the $15 million deposit to the European enterprise.

The shipbuilder has reportedly said that the buyer can ask for a change in the drill ship’s structure if it is in agreement with Samsung Heavy Industries. Excluding two drillships, Samsung Heavy has three in stock, as buyers had rejected orders owing to a slide in the price of oil.

In an attempt to overcome year-long losses, Samsung Heavy cut down its capital stock for the betterment of its financial status. The company cut the face value of shares in July from 5,000 won to 1,000 won.

The shipbuilder also raised 1.28 trillion won via the sale of new shares in November.

Reference: yna.co.kr

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Source: Maritime Shipping News