South Korean shipbuilder Samsung Heavy Industries (SHI) has terminated an order for a delayed drillship that was one of two contracted in 2014 that were scheduled for delivery in June 2017, ordered by Ocean Rig.
However, as demand for drilling vessels deteriorated after oil prices declined sharply from late 2014, Ocean Rig delayed the construction of the units in April 2015.
SHI said in a Korea Exchange filing that the customer did not give notice that work on the drillship could resume, causing the contract to be torn up.
The plunge in oil prices has compelled oil companies to slash investments in exploration and production, which has in turn hit demand for drillships, rigs, and offshore support vessels.
Ocean Rig currently operates of nine drillships and two semi-submersible oil rigs and has 3 drillships under construction at SHI.
Above seen is the 2002 built semi-submersible oil rig  EIRIK RAUDE offshore Malta whilst under tow on 10th June 2016.
Above seen is the 2011 built drillship OCEAN RIG PAROS  offshore Malta whilst under tow on 20th July 2016.
Above seen is the 2014 built drillship OCEAN RIG ATHENA offshore Malta whilst under tow on 3rd March 2017.
Photos by Capt. Lawrence Dalli. Do not use these images without my permission. © All rights reserved. Malta Ship Photos & Action Photos –