STX loses $700m order

STX Offshore & Shipbuilding has suffered another blow after seeing a $700m drillship contract torn up.
STX Offshore

STX Offshore

The beleaguered Korean firm said a European customer ordered the unit in November 2012.

Though it did not name the company in question the announcement almost certainly refers to Norway-based Sigma Drilling which ordered a drillship in conjunction with Nobu Su-linked Vantage Drilling.

The writing for that contract has been on the wall since September when STX halted work on the unit at its Jinhae yard due to financial difficulties.

Vantage said at the time that construction of the Palladium Explorer could continue once the Korean yard reached a restructuring settlement with creditors.

Delivery was reset for early 2016 from an original handover date of November 2015 but Vantage also warned there was a possibility of cancellation.

As TradeWinds reported in October, there were suggestions that creditors were trying to transfer construction of the drillship to rival Korean yard DSME which has built all three of Vantage Drilling’s existing drillships.

New York-listed Vantage has yet to confirm the contract has been shredded.

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