FAIRSTAR and Malta Shipyards Agree on Settlement

Fairstar Heavy Transport NV (FHT) has agreed with Malta Shipyards on all outstanding commercial points regarding the conversion of the Fjord. Fairstar will be making a final payment on redelivery of EUR2.5 million. This payment will achieve a full and final resolution of all commercial points of the Fjord Conversion Contract.

Philip Adkins, CEO, reported from Malta "Fairstar is pleased to have worked closely with Malta Shipyards to finalise this commercial agreement. The Fjord conversion was a difficult and complicated project for all of us. In addition to finalising the economics of the contract once and for all, the agreement was achieved in a friendly and cooperative spirit. This eliminates the possibility of any adversarial fall-out between our two companies and paves the way to work closely together on Fjell. I believe we have all learnt a lot from this experience and are mutually determined to make sure Fjell is more successful. Fairstar is especially grateful for the involvement of Malta Shipyards new Chairman, Mr Robert Aquilina. Mr Aquilina was instrumental in bringing Fairstar and Malta Shipyards to a constructive and positive resolution of the situation that could have easily become hostile and adversarial. Fairstar is looking forward to working with Malta Shipyards on the Fjell project.

The Fjord will be weighing anchor and leaving Malta next week. Fairstar is finalising discussions with a number of counterparties interested in using the Fjord for their offshore transport projects. FHT looks forward to announcing these details once negotiations have been finalised.