Rig: Deepsea Bollsta

Bollsta Dolphin Settlement

Fred. Olsen Energy ASA and Hyundai Heavy Industries Co., Ltd. ("HHI") are pleased to announce that they have resolved by commercial agreement their disputes and differences arising in connection with the newbuilding contract for the construction of the semi-submersible drilling platform "Bollsta Dolphin". Ownership of the platform will be retained by HHI and the arbitration proceedings associated with the disputes have been terminated by consent. All of the claims that have been asserted by the parties have been withdrawn and Bollsta will receive about MUSD 176, 4 from HHI of the first instalment paid by Bollsta. In a joint statement, the parties said: "We are very pleased that our differences have been resolved in an amicable way.”

Bollsta Dolphin - Termination of Construction Contract and Drilling Contract

Bollsta Dolphin Pte. Limited (“Bollsta”), a wholly owned subsidiary of Fred. Olsen Energy ASA (“FOE”), has notified Hyundai Heavy Industries Co., Ltd. Korea (“HHI”) that it has exercised its contractual termination right under a newbuilding contract between HHI and Bollsta for the construction of a semi-submersible drilling rig (the “Rig”) as a result of delay in delivery of the Rig. The rig construction contract provides that on termination Bollsta will be entitled to a refund of the first instalment paid to HHI of USD 186,390,240 plus accrued interest. The Rig was on 26 October 2012 contracted by Dolphin Drilling Ltd., another wholly owned subsidiary of FOE (“DDL”), to Chevron North Sea Limited (“CNSL”). CNSL (as operator on behalf of its coventurers) and DDL have mutually terminated the drilling contract on amicable terms.

Hyundai asks for more time and money to complete 'Bollsta Dolphin'

Bollsta Dolphin Pte. Ltd (“Bollsta”), a wholly owned subsidiary of Fred. Olsen Energy ASA (“FOE”), today received a notice of arbitration from Hyundai Heavy Industries Co. Ltd. (“HHI”). HHI alleges that it is entitled to an additional payment of about USD167 million and additional time to complete and deliver a Semi-Submersible Drilling Unit which is under construction by HHI pursuant to a newbuilding contract that was entered into between HHI and Bollsta in 2012. Reference in this regard is made to our previous announcement to the Oslo Stock Exchange on 25 May 2012. FOE believes that HHI claim’s is considered unfounded.

Fred Olsen secures funds for delivery of 'Bollsta Dolphin'

Fred. Olsen Energy ASA (Fred Olsen) has signed a new six year bank credit facility of up to USD2,000 million. The credit facility will be used to repay existing bank loan, fully-finance the delivery of the newbuild ‘Bollsta Dolphin’ semisub rig and for general corporate purposes. The facility is provided by a group of international banks and GIEK/Eksportkreditt; with Nordea, ING, ABN Amro, Danske Bank, DNB, Handelsbanken, SEB and Swedbank as Mandated Lead Arrangers. Fred Olsen is expected to take delivery of the ‘Bollsta Dolphin’ in Q2 2015. Upon delivery the unit will be mobilised to the UK, where it has been contracted by Chevron for a fixed five year term, where it has been earmarked to perform drilling operations on Chevron’s development of the Rosebank field.

Nautronix to supply positioning system for 'Bollsta Dolphin'

Nautronix has secured an order from Hyundai Heavy Industries (HHI), South Korea to supply a NASNet® DPR (Dynamic Positioning Reference) System which will be used on the newbuild ‘Bollsta Dolphin’ drilling rig. The system provides robust mitigation against many of the risks associated with both acoustic and satellite positioning systems, allowing multiple users to benefit simultaneously from the same array with no risk of interference. NASNet® DPR uses cutting edge acoustic technology combined with a user-friendly interface to provide high speed position updates and stable positioning in water depths up to 4,000m.