Fred Olsen Energy (FOE) has cancelled a construction contract for a newbuild rig with Hyundai Heavy Industries in South Korea, as well as ending an agreement with Chevron in the UK North Sea.
The company said it had exercised its contractual termination right as a result of the rig’s delay.
Bollsta said the rig construction contract provides that, on termination, it will be entitled to a refund of the first instalment paid to Hyundai Heavy Industries of $186,390,240 plus interest.
The rig had been contracted by Dolphin Drilling, another wholly owned subsidiary of FOE, TO Chevron North Sea.
Both the oil major and Dolphin Drilling have agreed to terminate the drilling contract on amicable terms.
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