An option on a drillship newbuilding secured by Fred Olsen Energy at Hyundai Heavy Industries has lapsed.

Oslo-listed Fred Olsen has been hedging its bets on the vessel which it originally needed to firm by October, but it confirms the unit will not see the light of day.

In a statement to investors Fred Olsen does not offer any reason as to why it let the option lapse.

Fred Olsen turned to HHI in April with a potential two drillship order worth over $1.2bn. Delivery of the firm vessel is slated for the third quarter of 2013.