Awilco Drilling sells its final rig to Well-Safe Solutions | Rigzone
Offshore drilling company Awilco Drilling has agreed to sell its latest drilling rig to UK plug and abandonment specialist Well-Safe Solutions.
Awilco Drilling said its wholly-owned subsidiary Awilco Drilling Offshore UK Limited has signed a memorandum of understanding for the sale of the WilPhoenix semi-submersible rig to Well-Safe Solutions.
The company added that the agreed purchase price is $15.5 million. The platform’s expected delivery time is on or about June 1, 2022.
WilPhoenix is one of two Enhanced Pacesetter semi-submersibles from Awilco Drilling and is equipped for drilling in water depths of up to 1,200 feet. With the sale of the WilPhoenix, Awilco Drilling will no longer own offshore drilling rigs.
Note that WilHunter, Awilco Drilling’s other semi-submersible, is being marketed for recycling.
According to available data, the WilPhoenix platform has been cold stacked in Scotland since 2016 with no job prospects. The state of the fleet report claims that the drilling rig was last used by Hess in 2015.
Awilco Drilling attempted to purchase new rigs, but that also ended in disaster. Namely, Awilco is in a dispute with rig builder Keppel over two other rigs — the Nordic Winter and the Nordic Spring — that the company ordered in 2018 and 2019.
Both rig orders were canceled in two separate events in 2020 due to alleged breaches of contract, which Keppel denied. The company is also seeking reimbursement of deposits paid by Keppel and the two are in arbitration proceedings.
Keppel returned the favor by submitting claims regarding amounts it considers recoverable due to termination clauses in the contracts for Nordic Winter and Nordic Spring. The amount requested by Keppel is $424.9 million for the first platform and $268.9 million for the second. The end of arbitration for both platforms will be no earlier than Q4 2022.
As for Well-Safe, WilPhoenix is the company’s second semi-submarine platform. The company purchased the Ocean Guardian semi-submersible drilling rig from Diamond Offshore in 2019 and converted it into a plug-and-drop rig, a fate that most likely awaits the WilPhoenix.
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