UK offshore drilling contractor Awilco Drilling has revealed that it concluded the sale of its solely remaining drilling rig.
The now rigless firm bought its WilHunter semi-submersible, which has been stacked since 2016, for scrap.
The WilHunter is an enhanced pacesetter semi-submersible, geared up for drilling in water depths as much as 1,500 ft. The WilHunter rig was constructed by South Korean Daewoo Shipbuilding & Heavy Equipment in 1983 and upgraded in 1999 and 2011.
The rig was warm-stacked for a while in Invergordon, however it was ready and cold-stacked there in late 2016. The final contract for the rig was awarded by Hess in 2015. The cold-stacked rig, in line with the corporate’s earlier statements, price Awilco Drilling round $1,300 a day.
Earlier this 12 months, Awilco Drilling signed a sale and buy settlement with Rota Transport to recycle the rig on the Aliaga Shipyard in Turkey. The worth of the deal was not disclosed on the time nor following closing, however VesselsValue believes that the scrap worth of the WilHunter is $11.4 million.
Till lately, the corporate had two rigs on its books. The opposite rig was one other pacesetter semi-sub – the WilPhoenix however that rig was bought to the UK-based plug and abandonment specialist Nicely-Secure Options. The sale of the rig was closed earlier this month.
The WilPhoenix rig has additionally been cold-stacked in Scotland since 2016 with out employment prospects and was bought to the brand new proprietor for a price ticket of $15.5 million.
It’s value reminding that Awilco Drilling did try to purchase new rigs, however it led to catastrophe. Particularly, Awilco is in a dispute with rig builder Keppel over two different rigs – the Nordic Winter and the Nordic Spring – which the corporate had ordered in 2018 and 2019.
Each orders for the rigs have been canceled in two separate occasions in 2020 because of alleged breaches of contracts, which Keppel denied. The corporate can also be in search of a refund of $97.7 million in paid installments from Keppel and the 2 are at present in arbitration proceedings.
Keppel returned the favor by submitting claims in respect of quantities it considers recoverable because of termination provisions within the contracts for each Nordic Winter and Nordic Spring. The quantity Keppel is asking for is $424.9 million for the primary rig and $268.9 million for the second.
Awilco believes it owes nothing concerning the 2 offers and the top of the arbitration for each rigs might be no sooner than the fourth quarter of 2022.
To remind, Dolphin Drilling was in a position to safe the advertising and marketing rights for the drilling rigs initially ordered by Awilco in 2021.
Now, Awilco might be specializing in the result of those court docket proceedings as beforehand said in its monetary report and hold a watch out for attainable new investments.
“Though the principle focus within the quick time period might be on the arbitration processes, minimizing prices and thereby maximizing returns to the shareholders, the corporate shall additionally proceed to guage new funding alternatives. If a beautiful alternative arises, which enhances the Firm’s monetary and operational aspirations, operations will resume as soon as once more,” Awilco said.
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