International offshore drilling contractor Ocean Rig UDW Inc. and South Korean yard Samsung Heavy Industries (SHI) have agreed to postpone the delivery of the newbuild drillship Ocean Rig Crete to September 2020.
"Our subsidiary, that is party to the shipbuilding contract for the construction of its 8th generation enhanced integrated design newbuilding drillship, the Ocean Rig Crete, reached an agreement with SHI to postpone the delivery of the Ocean Rig Crete to September 2020," said a press release from the company.
Under the agreement reached with SHI the expected delivery date will be September 30, 2020 but may be brought forward at the option of the Company.
As part of the agreement, the Company will make a $22.25 million payment to the yard within July 2018 against the remaining yard installments.
Pankaj Khanna, President and Chief Executive Officer of the Company, commented: “We are pleased to have reached an agreement to postpone the delivery of the Ocean Rig Crete to September 2020. We appreciate the support of Samsung Heavy Industries and the continuing strategic partnership involving the construction of eleven drillships."
He added: "With oil prices increasing to above $70 per barrel, the terms agreed with Samsung Heavy Industries provide substantial optionality and leverage to a market that is expected to be significantly improved when the Ocean Rig Crete is delivered to us."
"As a reminder, the Ocean Rig Crete is an 8th generation enhanced integrated design drillship, is one of the most technologically advanced drillships in the world with a 2.8 million pound hook load, 2 BOPs and 6 mud pumps and may be equipped to drill in water depths of up to 4,000 meters,” Pankaj concluded.