By OGJ editors
HOUSTON, Feb. 4 -- Statoil ASA and Fred Olsen Energy ASA subsidiary Dolphin AS said Monday they have reached an amicable solution to a dispute over responsibility for cost overruns in connection with modifications to a converted drilling rig.
In late 1999, Statoil had refused to accept delivery of Borgland Dolphin, the converted drilling rig, claiming the terms of the lease contract had not been fulfilled because delivery was more than 1 year late. Fred Olsen said the delay was due to change orders from Statoil. The $116 million conversion cost for the rig ran about $121 million over budget as well.
Under terms of the settlement, Statoil said it would pay Dolphin 75 million kroner in compensation.
Following the settlement agreement, the two companies said they were "pleased to be able to put this dispute behind them" and to again "focus on further cooperation."