Gulf Oil and Gas accountACCOUNT

Scorpion Offshore Ltd. - Resolves Semisubmersible Construction Contract

Source: www.gulfoilandgas.com 1/9/2009, Location: Asia

On 27 November 2008 Scorpion Offshore Ltd. announced that its wholly owned subsidiary, Scorpion Deepwater Ltd. ("Deepwater"), was unable to secure necessary financing for the construction and delivery of a DSS-38 class semisubmersible ("Deepwater Rig"). Contracts were signed for construction of the Deepwater Rig at Keppel FELS in Singapore and for the provision of the unit's drilling and subsea equipment with third parties ("Third Party Vendors").

Despite its best efforts, the continuing turmoil in the global credit market has prevented Deepwater from securing the necessary financing to meet its future payment obligations to Keppel FELS and the Third Party Vendors. Accordingly, Deepwater has reached agreement with Keppel FELS and Third Party Vendors to amicably terminate the construction contract and equipment orders on mutually acceptable terms. As a result of these negotiations, the Company's total combined liability for the cancellation of these contracts is not expected to exceed the USD 74 million which has been paid by Scorpion to date.

Scorpion and Deepwater are working closely with Keppel FELS and the Third Party Vendors to progress discussions with other parties who have expressed an interest in assuming Deepwater's contracts to construct and equip the semisubmersible. The outcome of these discussions should not affect Deepwater's financial exposure.
Scorpion Offshore Ltd. is a Bermuda based corporation founded in 2005 to own and operate state-of-the-art offshore drilling rigs.

Rig Equipment >>

Rig Equipment News in Singapore >>

Brunei Darussalam >>  3/30/2020 - Aker Solutions, in a joint venture with PTAS Sdn Bhd, has signed a five-year agreement to provide offshore maintenance and modification services to Br...
China >>  3/25/2020 - McDermott International, Inc. announced that Chevron Lummus Global (CLG), McDermott's joint venture with Chevron, has been awarded a sizeable* contrac...

Azerbaijan >>  3/19/2020 - SOCAR and Norway’s Equinor have confirmed a discovery of Karabagh field located 120 kilometers offshore, east of Baku, in the Azerbaijan sector of the...

Related Categories: General  Rig Equipment  Rig Operators  Rigs, Coring & Exploration 

Related Articles: General  Rig Equipment  Rig Operators  Rigs, Coring & Exploration 


Singapore Oil & Gas 1 >>  2 | 3 | 4 | 5 |

More News

Related Links

AZ BD BN CN GE HK ID IN IR JP KH KR KZ MM MN MY PG PH PK RU SG TH TJ TM TW UA UZ VN
Gulf Oil and Gas
Copyright © 2020 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.