West Aquila Inc., the 100% owned subsidiary of Northern Drilling Ltd, has notified Daewoo Shipbuilding & Marine Engineering Co. Ltd (“DSME”) that it has cancelled the resale contract for the 7th generation ultra deepwater drillship West Aquila due to delay of delivery as well as repudiatory breach of contract.
West Aquila Inc. has made advance payments totaling approximately $90 million under the contract, and will claim a refund of the instalment paid, plus interest and damages. If this claim is disputed, the Company will seek an award via London arbitration in accordance with industry standard procedures and timescales.