High Court Rules in Favor of Global Marine

A High Court judgment has today set aside the previous award of an Arbitration Tribunal regarding the over $31M which had been ruled was due to Harland and Wolff and payable by 28 September in relation to the delivery installment for the deepwater drillship Glomar Jack Ryan.

Harland and Wolff has been granted leave to appeal today's judgment, which has been made on the premise that Global Marine in August validly exercised their right to take possession of the vessel.

The question of whether or not the vessel at that time was validly tendered for delivery by Harland and Wolff, is to be dealt with by the Arbitration Tribunal at a later stage.

Commenting on the ruling Harland and Wolff, Chief Executive, Brynjulv Mugaas, said "We are deeply disappointed at today's ruling which will further deprive Harland and Wolff of monies owed on the completed contract for the construction of the Glomar Jack Ryan drillship."

"In November 1999 an Interim Agreement was reached between Harland and Wolff, Fred Olsen Energy ASA and Global Marine to provide the funding to enable completion of the two drillships. It is ironic that today's ruling comes exactly one year on from that agreement and sees Global Marine continue to use every possible means to withhold payment for work completed by Harland and Wolff."

"The attitude and behavior of Global Marine, coupled with uncertainty regarding both timing and the final amounts due, has impacted negatively on the ability of Harland and Wolff the secure major new orders. This has forced the company to significantly reduce the number of employees which it is able to retain, from a level of around 1,800 at the beginning of the year to the current level of approximately 600."