Fred Olsen Energy terminates rig contract at HHI

OCTOBER 27, 2015 — Last week Oslo headquartered Fred. Olsen Energy ASA reported that South Korean shipbuilder Hyundai Heavy Industries Co. Ltd. (HHI) wanted another $167 million and more time to complete a semi-submersible drilling unit ordered in 2012 (see earlier story.)

Today, Fred. Olsen Energy said that its Bollsta Dolphin Pte. Limited subsidiary has notified HHI that it has exercised its contractual termination right under the newbuilding contract as a result of the delay in delivery of the rig, the Bollsta Dolphin, a Moss CS 60 E, sixth generation ultra deepwater semi-submersible.

Fred. Olsen Energy says that the rig construction contract provides that on termination Bollsta will be
entitled to a refund of the first instalment paid to HHI of $186,390,240 plusaccrued interest.

The rig had been under contract to Chevron North Sea Limited under a contract entered into in October 2012. That contract has now been "mutually terminated" on "amicable terms."

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