Friede Goldman Halter Reaches Agreement on Petrodrill Semisubs

Friede Goldman Halter, Inc. announced that its Friede Goldman Offshore subsidiary has reached an agreement with Petrodrill IV Ltd. and Petrodrill V Ltd. ("Petrodrill") to advance the construction of two Amethyst-class deepwater semisubmsersible drilling rigs.

Friede Goldman will work, at the customer's direction, and operate on a cost-reimbursable basis with contractually established rates for equipment, personnel, and labor. The agreement is expected to generate greater security and additional employment opportunities for the local workforce. Preliminary estimates place work for this phase of completion at four months for the Company's Pascagoula, Mississippi facility and five months at the Orange, Texas facility. Petrodrill may opt to add additional phases.

FGH also announced plans to consolidate its ongoing Pascagoula, Mississippi offshore projects at the East Facility on Greenwood Island. The West Bank facility will undergo a restoration and upgrade during the temporary closure.

According to Offshore Group President Ron Schnoor, "With as many as six oil rigs moored at the docks over the past several years, FGO has been unable to allow for maintenance dredging. We have approximately $500,000 in the port's coffers specifically designated for dredging of the basin alongside our docks at the West Bank, so this is the perfect opportunity to carry out that project at no cost to the Company." The West Bank facility renovation is just one example of the numerous initiatives that the Company is taking to support its goals of cost-effective, stable, and well-managed business operations.