West Bollsta (Seadrill) (Semisub)

Fred Olsen secures funds for delivery of 'Bollsta Dolphin'

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26 June 2014

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.

Source: http://fredolsen-energy.com/press-release1?SelectedRelease=1642322


More News for Operator: Seadrill

15 Sep 2015

Seadrill terminates under construction 'West Mira' semisub

Seadrill Limited ("Seadrill" ), has notified Hyundai Heavy Industries Co Ltd. ("HHI") that it has exercised its right to cancel the contract for the construction of the West Mira, a sixth generation ultra-deepwater harsh environment semisubmersible drilling unit ("West Mira"). The West Mira was ordered during the second quarter of 2012 and the delivery date stated in the construction contract was by December 31st, 2014. Due to HHI’s inability to deliver the West Mira within the timeframe required under the contract, Seadrill has exercised its cancellation rights. Under the contract terms, Seadrill has the ability to recoup the USD168 million in pre-delivery instalments to HHI, plus accrued interest. In the fourth quarter of 2012 Seadrill was awarded a five year contract for the West Mira with Husky Oil Operations Limited ("Husky") for operations in Canada and Greenland. As stated in Seadrill’s second quarter earnings report, due to the late delivery of the West Mira, Seadrill had tentatively agreed with Husky to reduce the dayrate of the drilling contract. Seadrill remains in discussions with Husky to find an alternative solution to meet its drilling requirements.

22 Sep 2015

Contract associated with cancelled 'West Mira' semisub also now cancelled

Seadrill Limited ("Seadrill"), has been notified by Husky Oil Operations Limited ("Husky") of the cancellation of the drilling contract for the West Mira ("The Unit"). In the fourth quarter of 2012 Seadrill was awarded a five-year contract for the West Mira with Husky for operations in Canada and Greenland. The total estimated base revenue potential was approximately USD1 billion. As stated in Seadrill’s second quarter earnings report, due to the late delivery of the Unit, Seadrill tentatively agreed with Husky to reduce the dayrate on the West Mira. The construction contract was subsequently cancelled by Seadrill due to the Shipyard's inability to deliver the Unit within the timeframe required under the contract. Seadrill remains in discussions with Husky to find an alternative solution to meet its drilling requirements.

22 Oct 2015

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.

27 Oct 2015

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.

22 Aug 2016

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.”

13 Mar 2017

Seadrill Limited Announces Settlement of West Mira Arbitration

Seadrill Limited ("Seadrill" or "the Company") announces today that it has reached a settlement agreement with Hyundai Samho Heavy Industries Co Ltd. ("HSHI") in relation to the West Mira ("the Unit") arbitration. Seadrill will receive a cash payment of $170 million in March 2017 as full settlement of the dispute. Arbitration proceedings began in October 2015 following the cancellation of the construction contract for the West Mira and were expected to conclude during the first half of 2018. This settlement agreement brings an early conclusion to the arbitration process. The Company will take a non-cash impairment of approximately $44 million to reflect the difference between the carrying value of the West Mira receivable and the cash payment to be received. As part of this settlement, Seatankers, a related party, has purchased the West Mira from HSHI. Seatankers is an asset holding company and is not expected to engage in offshore drilling activities in competition with Seadrill. The Company expects to execute an agreement with Seatankers for the commercial and technical management of the West Mira as well as a right of first refusal for purchase of the Unit.

25 Mar 2014

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.

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