SEOUL: Daewoo Shipbuilding & Marine Engineering Co., South Korea’s No. 2 shipbuilder, said that it has terminated a contract with a U.S. customer to build a drill ship for 703.4 billion won (US$593.6 million).
The decision was made as the customer has failed to fulfill its obligation of intermediate payment for the ship, the company said in a regulatory filing. The name of the customer was not available.
A company official said that the drill ship under construction was supposed to be delivered by the end of this year. He added that the company will keep building the ship and try to find a new customer.
The contract termination is feared to negatively affect its business already facing a fall in demand for drill ships and others amid protracted low oil prices.
