In Friday’s second big rig news, Scorpion Offshore Ltd.’s announced its rig-owning business Scorpion Deepwater had failed to borrow enough to build the semi-submersible drill rig ordered from Keppel FELS shipyard in Singapore.

Building the deepwater DSS-38 class rig included contracts for the provision of drilling and subsea equipment with third parties, much of it from Norway. “Despite its best efforts, the continuing turmoil in the global credit market has prevented Deepwater from securing the necessary financing to meet its future payment obligations to Keppel FELS and (the equipment suppliers),” a statement Friday said.

Scorpion said the material orders were scrubbed “amicably … on mutually acceptable terms”. But Scorpion had already cut its losses, some $74 million paid to date.

Meanwhile, negotiations with unnamed parties interested in assuming Deepwater's contracts and building the rig could yet produce a new rig-owner.

Tags: Scorpion Offshore