Ocean Rig Loses Arbitration with Maritima

On Thursday March 28, 2002 the Award was published in the arbitration between Maritima Petroleo e Engenharia Ltda ("Maritima") and Ocean Rig. With the exception of Maritima's claim for the return to it of the sum of US $15 million referred to below, the arbitration tribunal has dismissed all of Maritima's claims (totaling US $449,556,779).

It has also confirmed that Ocean Rig was entitled to draw down on the US $15 million letter of credit which was issued in its favor by Safra National Bank of New York (on Maritima's order). However, on the basis that Ocean Rig has not, in the event, suffered any loss as a consequence of Maritima's failure to secure drilling contracts with Petrobras for Ocean Rig's two drilling rigs, the tribunal has directed that the US $15 million plus interest, which currently is deposited with HSBC Bank in New York, should be returned to Maritima.

The Award will now be reviewed in detail by Ocean Rig and its legal advisers, and possible grounds for an appeal on that part of the Award which relates to the letter of credit monies, will be considered.