Hyundai wants more time, money, to deliver Bollsta Dolphin rig

Fred. Olsen Energy has received a notice of arbitration from South Korea’s rig builder Hyundai Heavy Industries Co. Ltd. (HHI).

Namely, the Oslo-listed company said Thursday that its subsidiary Bollsta Dolphin Pte. Ltd (Bollsta), had received a notice in which HHI alleges that it is entitled to an additional payment of about $167 million.

In its notice HHI further asked additional time to complete and deliver a semi-submersible drilling rig ordered in 2012. Fred. Olsen did not say what the reasons for the arbitration claim were.

The rig in question is the Bollsta Dolphin semi, hired by Chevron for operation west of Shetland. Fred. Olsen ordered the rig in May 2012, with scheduled delivery in March 2015. Total project cost was then estimated to $700 million.

Presenting its 2Q results in July this year, Fred. Olsen said the Bollsta Dolphin would be delivered in the third quarter of the year, and start its five-year contract with Chevron.

The rig in question is a Moss Maritime CS 60 E design and is designed for water depth capacity up to 10,000 feet. Fred. Olsen did not say if the Hyundai claim would affect the Chevron contract. The company will reveal its third quarter 2015 results next Wednesday, where it is expected to provide more info on the matter.

Offshore Energy Today Staff