Hyundai Heavy Industries (HHI) has delivered a notice of arbitration to Bollsta Dolphin, the Singapore-registered subsidiary of Fred Olsen Energy that ordered a drilling rig from the yard in 2012.
HHI alleges it is owed an extra payment of $167m from Bollsta Dolphin, plus more time to complete construction and deliver the ultra-deepwater semi-submersible drilling unit to the company (artist’s impression pictured). The rig was originally scheduled for delivery this year.
“HHI’s claim is considered unfounded,” Fred Olsen Energy stated in a filing to the Oslo Stock Exchange today.
The two parties signed a newbuilding contract for the harsh-environment drilling rig in 2012. At the time, the total project cost was estimated at around $700m, including spare parts, owner-furnished equipment and the yard project team.
The drilling rig itself is being built to a Moss Maritime CS 60 E design for year-round operations in the Norwegian Barents Sea. The rig will be able to drill at water depths of up to 10,000 feet and will be compliant with Norwegian Continental Shelf requirements.