Fred Olsen Energy's Unit Terminates Contract with HHI for Newbuild Semisub

Norway’s Fred Olsen Energy ASA (FOE) announced Tuesday that its wholly owned subsidiary Bollsta Dolphin Pte Ltd. (Bollsta) has notified South Korea’s Hyundai Heavy Industries Co., Ltd. (HHI) that it has exercised its contractual termination right under a newbuilding contract between HHI and Bollsta for the construction of a semisubmersible 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 $186,390,240 plus accrued interest.

The Rig was on Oct. 26, 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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