Samsung Sells Former Ocean Rig Drillship. Eyes Sale Of Three More.

Samsung Sells Former Ocean Rig Drillship. Eyes Sale Of Three More.
Samsung Heavy Industries has sold a former Ocean Rig drillship to an undisclosed European company for $245 million.

South Korea’s shipbuilder Samsung Heavy Industries has sold a former Ocean Rig drillship to an undisclosed European company for $245 million.

The shipbuilder said that it was encouraged by an improved environment in the offshore drilling market due to the recent oil price rise and that it hopes to sell three more drillships it currently has stock as quickly as possible.

Samsung Heavy added that the rig was initially ordered by Ocean Rig all the way back in 2014 and that the delivery to the new owner is supposed to occur in the first quarter of 2023.

Also, the buyer must confirm the delivery by October 15, 2022, or Samsung can cancel the deal and keep the deposit of $15 million. This shipyard will secure additional liquidity and enhance its capital structure.

This is another rig that has quite a saga behind it. Namely, Ocean Rig ordered two drillships from Samsung Heavy. The two rigs in question were the Ocean Rig Santorini and Ocean Rig Crete. After a number of delays, the drillships were supposed to be delivered in the third quarter of 2019 and the third quarter of 2020.

Then, the whole company was then acquired by Transocean in 2018. That meant that the drillships were never delivered since Transocean canceled the orders in September 2019.

Samsung Heavy was able to get some work for the Santorini drillship in June this year. The company signed a charter contract for the drillship with Italy’s Saipem and delivered it last month.

That meant that the shipyard had only one more former Ocean Rig drillship in stock. As part of a deal with Saipem, Samsung Heavy gave the Italian firm an option to buy the Santorini drillship, which can be used at its discretion depending on the trend of demand.

Samsung Heavy stated in the statement regarding the rig sale that, since the contract with Saipem includes a purchase option, a full sale is expected in the future.

As for the Ocean Rig Crete, it is a 7th generation enhanced integrated design deepwater drillship. The rig has dual activity capabilities and is designed for drilling operations in water depth up to 12,000 feet and is dynamically positioned.

To contact the author, email bojan.lepic@rigzone.com


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