Pacific Drilling S.A. announced that the company has exercised its right to rescind the construction contract with Samsung Heavy Industries (SHI) for the Pacific Zonda (UDW drillship) as the South Korean shipyard failed to deliver the newbuild vessel on time.
The contract was terminated because SHI failed "to timely deliver a vessel that substantially meets the criteria required for completion of the vessel in accordance with the construction contract and its specifications," Pacific Drilling said in a press release Wednesday.
Pacific Drilling, which made advance payments totaling around $181.1 million under the contract, said it will seek a refund of the installment payments.
The company exercised an option in January 2013 with SHI to build the drillship, originally scheduled for delivery in the first quarter of 2015.
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