China-based shipbuilder COSCO Corporation discontinued construction of an Octabuoy offshore production platform Friday after failing to find a buyer for the rig.
COSCO initially won the contract to build the hull of the semi-submersible unit in 2008 from the now bankrupt ATP Oil & Gas.
When UK-based ATP filed for bankruptcy in 2012 COSCO was charged with finding a buyer for the platform.
The company has been unable to secure a buyer as explorers and producers trim expenditures and has decided to terminate the project, Reuters said.
COSCO will take a one time charge of about $72 million that will be recorded in the financial year that ended on December 31, 2014.
“The steep fall in crude oil prices over recent months has had an adverse impact on the global offshore marine industry. This has made it even more difficult to secure a buyer for the Octabuoy as industry players have cut back even further on new orders,” the company said.