Hanwha Ocean has held a naming ceremony for its high-specification ultra-deepwater drillship Tidal Action, marking its official entry into the offshore drilling business.
The Tidal Action is capable of drilling in waters up to 3,600 meters deep, with a maximum drilling depth of 12 kilometers. The drillship is also equipped with a dynamic positioning system for stable berthing and a blowout preventer with a pressure resistance of 20,000 psi to enhance safety and operational efficiency. The delivery of the vessel is “an important milestone for Hanwha Ocean in the offshore drilling field”.
Tidal Action (formerly known as “West Libra”) was originally ordered by Seadrill, an offshore drilling company owned by Norwegian shipping magnate John Fredriksen, from Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering, DSME) in 2013. The order also included another drillship named West Aquila, with an order value of US$1.1 billion.
The order for the two vessels was canceled in March 2018 due to the 2017 Seadrill bankruptcy. Following Seadrill’s cancellation, Northern Drilling, another offshore drilling company founded by John Fredriksen, purchased the two drillships from DSME in May 2018 for $296 million per vessel. However, deliveries scheduled for January and March 2021 were not made to the new owner until May 2021, and the parties agreed to suspend the delivery program.
In August and October 2021, Northern Drilling suddenly “changed its mind” and announced that it was canceling the resale contracts for the two drillships, citing delayed delivery and breach of contract by DSME, and stating that it would be seeking a refund of the downpayment it had made. Subsequently, both parties commenced litigation over the two withdrawn drillships.
However, last year the London Arbitration Court ruled in favor of Hanwha Ocean and rejected Northern Drilling’s claims, Hanwha Ocean does not need to return the US$180 million down payment that the shipowner had paid.
West Aquila, one of the two abandoned drillships, was sold earlier to Liquila Ventures for about $200 million and was delivered in October 2023 from the shipyard. Tidal Action is operated by Hanwha Ocean itself.
In February 2024, Hanwha Ocean established Hanwha Drilling to operate its drilling fleet and, in partnership with Brazilian offshore drilling company Constellation, successfully signed a long-term charter contract for the Tidal Action with Petrobras. Drilling operations in Brazilian waters are scheduled to begin in the second half of this year.
Philippe Levy, President of Hanwha Ocean Offshore Division, said, “Delivering a world-class drillship and officially entering the offshore drilling market is a significant achievement. We will develop into a leader in the offshore energy industry with our superior technology and strategic vision.”