COSL, the oil and gas service unit of CNOOC, has settled a rig contract termination dispute with Equinor.
Equinor, formerly known as Statoil, terminated the contract for semi-submersible drilling rig COSL Innovator in 2016 following a fatal accident on board the rig in December 2015. The two companies then entered into a long legal battle over the termination.
As a part of the agreement, Equinor will pay on behalf of the Troll-licence $188m to COSL Offshore Management.
The companies will also enter in to a new master frame agreement, which enables COSL to provide additional drilling units and services to Equinor.
“I am very pleased with this agreement. We can now finally leave this case behind. It was not the financial compensation that was the most important to us. But rather the recognition, both for COSL as a company, and for our rigs. The master frame agreement is also an important part of this,” said Frank Tollefsen, CEO of COSL.