New Fortress Energy has sold two cylindrical semi-submersible rigs—formerly owned by Seadrill—for scrapping. This move marks the final abandonment of the company’s four-year plan to convert the rigs into floating liquefied natural gas (FLNG) units, a project for which conversion contracts had previously been signed with shipyards.
According to the latest demolition data from ship valuation firm VesselsValue, New Fortress Energy sold two cylindrical semi-submersible rigs—the 2009-built “Sevan Driller” and the 2012-built “Sevan Brasil”—for scrap in September. The transaction prices and demolition locations were not disclosed.
Subsequently, the two offshore platforms, along with Sevan Drilling, were integrated into Seadrill, a Bermuda-based offshore drilling platform operator, and remained idle for an extended period during Seadrill’s bankruptcy restructuring.
In April 2022, New Fortress Energy acquired the “Sevan Driller” and the “Sevan Brasil” at low prices of $18 million and $6 million, respectively. Under the terms of the transaction, the two offshore platforms were no longer to be used for drilling operations and have therefore remained idle for several years.
Under New Fortress Energy’s plan, the two offshore platforms were originally scheduled to be incorporated into the company’s “Fast LNG” program. In October 2022, the company signed a conversion contract with the then-Singaporean shipbuilder Sembcorp Marine (now renamed Seatrium), which was responsible for the engineering design and conversion of the two offshore platforms, including the fabrication and integration of the FLNG topsides.
Under the conversion contract, both offshore platforms will be equipped with liquefaction systems designed by New Fortress Energy, with an annual production capacity of approximately 1.4 million tons of LNG. The hull conversion and top module construction for the first FLNG were originally scheduled for delivery in the first half of 2024, while the conversion of the second FLNG will follow under a separate contract.
In addition to awarding shipyard conversion contracts, New Fortress Energy has even signed service contracts for two offshore platforms. Under a partnership with Mexico’s state-owned oil company (Pemex), the “Sevan Driller” was originally scheduled to provide services for the Lakach deepwater gas field development project off the coast of Mexico, with the aim of liquefying the vast majority of the natural gas produced by the project.
However, after four years, New Fortress Energy ultimately failed to carry out the retrofitting plans for the two offshore platforms. The company disclosed in its latest quarterly report: “In 2025, it was determined that the Lakach deepwater gas field development project was no longer feasible; this project was one of the assets affected by a $123.1 million impairment charge.”
It is worth noting that this asset disposal comes as New Fortress Energy is pursuing a major balance sheet restructuring and scaling back its overall LNG development plans. A British court approved New Fortress Energy’s restructuring plan in June 2026, and the company is currently working with creditors to spin off its Brazilian business segment from the rest of the group.