Hyundai Heavy Claims Fred Olsen Energy Owes $167 Million Over Unfinished Rig

Bollsta Dolphin. Photo: Fred.Olsen Energy
Bollsta Dolphin illustration. Photo: Fred.Olsen Energy

Fred Olsen Energy revealed Thursday that Hyundai Heavy Industries, the world’s biggest shipbuilder, has filed a claim against a subsidiary of Fred Olsen over $167 million HHI claims is owed over the construction of a semi-submersible drilling rig.

The claim was received by Bollsta Dolphin, a wholly owned subsidiary of Fred.Olsen Energy on Thursday in a notice of arbitration alleging that HHI is entitled to the additional payment and also additional time to complete and deliver the drilling rig under construction at HHI.

The contract for the harsh environment, ultra deepwater drilling rig was ordered from HHI in May 2012 for a ‘first phase’ cost of $700 million, according to a 2012 statement from HHI after receiving the contract. The contract at the time included one option for an additional rig.

Delivery was originally anticipated for March 2015 from HHI’s Gunsan shipyard in South Korea.

Fred Olsen says that “HHI claim’s is considered unfounded”.