By the OGJ editors
HOUSTON, Apr. 8 -- BP PLC and its partner companies will pay Rowan Cos. Inc. $175 million as part of a settlement that resolves a long-standing dispute over Rowan's Gorilla V jack up rig.
The agreement was reached between a group comprising units of BP PLC, Amerada Hess Corp., and Enterprise Oil PLC and a group comprising Rowan LeTourneau Inc. and British American Offshore Ltd. Neither group of companies admitted fault.
As part of the agreement, Rowan dismissed a lawsuit in Houston planned against BP and partners. In turn, BP agreed to withdraw any previous negative comments regarding Gorilla V.
The case stems from Amoco (UK) Exploration Co. (now part of BP) terminating its long-term contract for North Sea drilling while the Super Gorilla Class jack up was still under construction. Amoco alleged a breach in equipment performance, according to Rowan (OGJ, Feb. 1, 1999, p. 30).