Offshore driller Fred. Olsen Energy ASA and South Korea’s rig builder Hyundai Heavy Industries Co., Ltd. have resolved their dispute over the canceled order for the ‘Bollsta Dolphin’ semi-submersible drilling rig.
To remind, In October 2015, Hyundai Heavy asked for more time and money from Fred. Olsen Energy to complete building the rig. Days later, Fred. Olsen Energy terminated the contract with Hyundai as a result of a delay in delivery.
Following the termination, the South Korean rig builder launched arbitration proceedings to resolve the matter.
However, according to a statement by Fred. Olsen on Monday, August 22, 2016, the issue has been resolved by commercial agreement, and the disputes have been terminated by consent from both sides.
Under the agreement reached, the rig will continue to be owned by Hyundai Heavy, and the arbitration will be terminated. Furthermore, Hyundai will pay back $176.4 million of the first installment paid by Fred. Olsen’s subsidiary Bollsta Dolphin Pte. Ltd.
In a joint statement, the parties said: “We are very pleased that our differences have been resolved in an amicable way.”