Fred. Olsen Energy has finally reached a multi-million dollar agreement with South Korean shipyard Hyundai Heavy Industries (HHI) over a controversial construction of a semi-submersible platform called Bollsta Dolphin.
“Ownership of the platform will be retained by HHI and the arbitration proceedings associated with the disputes have been terminated by consent,” Fred. Olsen said in a statement today.
HHI will pay back a first installment of $176.4m.
“We are very pleased that our differences have been resolved in an amicable way,” the pair said in a release, although the news is a hammer blow for struggling HHI, being left with a platform that will be hard to sell in today’s offshore market and having to refund cash it bitterly needs as it proceeds with a tricky restructuring.
The arbitration case dates back to October last year. The rig was ordered back in 2012, but the contract was nixed by the owner last year, citing late delivery.
The drilling rig is Moss Maritime CS 60 E design, able to drill at water depths of up to 10,000 ft.