Cobalt Explorer (Daewoo Shipbuilding & Marine Engineering (DSME)) (Drillship)

Vantage cancels 'Cobalt Explorer' construction

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13 August 2015

On August 13th, 2015, pursuant to the terms of the contract for the construction and sale of the Cobalt Explorer, Vantage Drilling Company (“Vantage”) announced that it has terminated the contract. Vantage will seek to recover all funds paid to Daewoo Shipbuilding & Marine Engineering (“DSME”) totalling approximately USD59.5 million plus contractual interest and any other amounts due under applicable law. DSME may seek to challenge Vantage’s ability to terminate the contract pursuant to arbitration provisions in the contract, which would result in a delay in recovery of any amounts that might be due to us under the contract. In addition, DSME itself may seek to terminate the contract for our failure to make the second milestone payment for the Cobalt Explorer under the contract. Such termination by DSME might entitle it to retain all supplies delivered to the shipyard and all milestone and other payments made by us to the shipyard to date, and to elect to sell the vessel and claim any deficiency in proceeds against us. We may consider future alternatives with DSME for the delivery of the Cobalt Explorer.

Source: http://api40.10kwizard.com/download.php?ipage=10435773&subsid=41&pdf=1


More News for Operator: Daewoo Shipbuilding & Marine Engineering (DSME)

13 Feb 2015

Vantage announces amendment to 'Cobalt Explorer' construction contract

Vantage Drilling Company ("Vantage") announced today that the terms of the Cobalt Explorer construction contract have been amended to defer the second progress payment until July 2015. In consideration of this deferral, we have also agreed to reduce the potential liquidated damages associated with the contract. All other terms and conditions of the construction contract remain in full force and effect. Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of three ultra-deepwater drillships, thePlatinum Explorer, the Titanium Explorer and the Tungsten Explorer, as well as an additional ultra-deepwater drillship, the Cobalt Explorer, now under construction, and four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs. Vantage's primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others.

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