WFW partner Joe McGladdery discusses newbuild offshore rig deliveries in depressed oil market in Offshore magazine

25 February 2016

In an article entitled “Oil price pressures risk discord in the drilling sector” appearing in the latest edition of leading industry publication Offshore magazine, London partner Joe McGladdery looks at the effect the slack demand for offshore rigs as a result of the depressed oil price can have on both contractors and shipyards in relation to completed newbuildings.

With contractors often unable to secure financing to pay the delivery instalment of the asset and shipyards facing a limited re-sale market for the highly specialised assets in an oversupplied market, he makes the case that both parties are better off renegotiating delivery dates rather than entering into litigation.