Daewoo Shipbuilding & Marine Engineering released a regulatory filing on December 16 that a newbuilding contract for one drillship worth KRW 709.8bn ($674.39m) signed with Oceania-based shipowner in 2008 had been cancelled. The value corresponds to 5.0% of the builder's consolidated revenue recorded last year.

The Korean shipbuilding giant explained, "The project has been delayed due to circumstances faced by the shipowner, driven by deteriorated global management environment. In line with the 11th provision of the contract, we cancelled the agreement for the owner's not fulfilling the deal."

In addition, the builder added, "In line with the newbuilding agreement, we decided to confiscate $34m construction costs previously received from the owner for a drillship which is subject to cancellation."

Contract period commenced from June 14, 2008, with a due date on December 16, 2013 (date of contract cancellation). On December 23, 2011, Daewoo released a regulatory filing that the builder had postponed the drillship delivery at the request of the owner.