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Fred. Olsen Energy ASA: Bollsta Dolphin – Termination of Construction Contract and Drilling Contract

October 27, 2015 2:50 AM
Business Wire

OSLO, Norway–(BUSINESS WIRE)–Regulatory News:

Fred. Olsen Energy (OSE:FOE)

Bollsta Dolphin Pte. Limited (“Bollsta”), a wholly owned subsidiary of Fred. Olsen Energy ASA (“FOE”), has notified Hyundai Heavy Industries Co., Ltd. Korea (“HHI”) that it has exercised its contractual termination right under a newbuilding contract between HHI and Bollsta for the construction of a semi-submersible drilling rig (the “Rig”) as a result of delay in delivery of the Rig.

The rig construction contract provides that on termination Bollsta will be entitled to a refund of the first instalment paid to HHI of USD 186,390,240 plus accrued interest.

The Rig was on 26 October 2012 contracted by Dolphin Drilling Ltd., another wholly owned subsidiary of FOE (“DDL”), to Chevron North Sea Limited (“CNSL”). CNSL (as operator on behalf of its coventurers) and DDL have mutually terminated the drilling contract on amicable terms.

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