Awilco Offshore has made a significant move by selling one of its semi-submersible drilling units. This sale marks a shift in the company's operations towards rigless activities.
The exact details of the sale are not specified, but it's clear that the company is adapting to changing industry demands.
The sale of the semi-submersible drilling unit is a strategic move to reduce the company's fleet and focus on more efficient operations.
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Awilco Drilling has completed the sale of the WilHunter semi-submersible drilling rig for recycling, marking the end of the company's ownership of drilling rigs. The WilHunter was last worked on by Hess in 2015 and had been cold stacked in Scotland since 2016.
The rig's scrap value is estimated to be around $11.8 million, according to VesselsValue. Awilco Drilling had initially planned to upgrade its fleet with two new semi-subs, Nordic Winter and Nordic Spring, but the orders were canceled and the company is now involved in arbitration cases with Keppel.
The sale of the WilHunter and the delivery of the WilPhoenix semi-submersible drilling rig to Well-Safe Solutions has marked a significant change for Awilco Drilling. The WilPhoenix will be converted for future well plug and abandonment (P&A) activity and will be renamed Well-Safe Defender.
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Offshore Drilling Firm Sells WilHunter Semi-Sub, Goes Rigless
Awilco Drilling has completed the sale of the WilHunter semi-submersible drilling rig for recycling, marking the end of its drilling rig ownership.
The WilHunter was built in 1983 and had been out of work since 2016, cold stacked in Scotland without employment prospects. It last worked for Hess in 2015.
The sale was part of Awilco Drilling's plan to recycle the rig at the Aliaga Shipyard in Turkey, a deal signed in the first quarter of 2022 with Rota Shipping.
The exact sale price was not disclosed, but VesselsValue estimates the scrap value of the WilHunter is around $11.8 million.
Awilco Drilling had been paying around $1,300 a day to keep the rig cold-stacked, a cost the company aimed to minimize by selling the rig for recycling.
The sale marks the second time Awilco Drilling has sold a rig for recycling in recent months, following the sale of the WilPhoenix semi-submersible drilling rig to Well-Safe Solutions.
With these sales, Awilco Drilling no longer owns any drilling rigs, and the company is now focused on evaluating new investment opportunities and minimizing costs through arbitration processes.
CEO Steps Down Amid Drill Rig Dispute
Awilco Drilling's CEO Jens Berge has stepped down from his post, citing the ongoing dispute with Keppel over two offshore rig cancellations.
The dispute centers around two semi-sub rigs worth $425 million that were ordered from Keppel in 2018-19.
Awilco terminated the contract for the first unit last June, accusing Keppel of a breach of contract, and demanded that Keppel repay $55 million.
Keppel refused, claiming that Awilco had failed to make a $32 million payment.
In December, Keppel upped the ante, cancelling the contract for the second rig as well.
Awilco denied Keppel's claim and asserted that the contract for the second rig was still valid and in force.
The firm did not have the cash on hand for the next installment as of the end of Q3 2020, but it said that it planned to fund the bill with a combination of new equity and debt.
Eric Jacobs, general counsel of leading Awilco shareholder Awilhelmsen AS, will step in as Awilco's interim CEO until a permanent successor is found.
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