Pacific Drilling Cancels Contract with SHI to Build Pacific Zonda Drillship

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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Flavio | Nov. 2, 2015
It is simply the law of the market. Think about how many people are in Europe and how many people are in Asia. Just think about how many people there are only in China itself. Lots of labor means you can offer a very low salary, meanwhile, Europe is rich and its very difficult to identify the rich and the poor. You cannot offer low salaries which implies higher costs. And by higher costs, I mean A LOT higher. Their labor is not better than what you have in Europe, theyre simply cheaper, thats it.

Nada Klemenc | Nov. 2, 2015
Well, after the European company destroyed European shipyards with the help of Asian shipyards and speculators ,personally I can not see why that would not be done by Asian shipyards? What are their workers better than European and for what reason should I, as a shipbuilder , have an understanding of the Asian shipyards when they destroy us with embarrassingly low cost of new shipbuilding?

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