Drilling/Production news briefs, Dec. 1

Transocean Sedco Forex � Global Marine Drilling � Ocean Rig � Friede Goldman Halter � Seven Seas Petroleum

Transocean Sedco Forex Inc. agreed to waive a $2 million claim and pay $67.5 million cash to Global Marine Inc. subsidiary Global Marine Drilling Co. to settle a dispute over a bareboat charter for the drilling rig Glomar Grand Banks. The companies had disputed the date of termination of the charter, the condition of the rig upon return to Global Marine, and Transocean Sedco Forex's liability to pay additional day rate.

Ocean Rig ASA and Friede Goldman Halter Inc. agreed to a schedule for completion and delivery of Ocean Rig's Bingo 9000-1 and Bingo 9000-2, both fifth generation offshore drilling rigs being outfitted at Friede Goldman's Pascagoula, Miss. shipyard. The agreement establishes new delivery dates of Mar. 1, 2001 for Bingo 9000-1 and June 1, 2001 for Bingo 9000-2. Friede Goldman has agreed to pay liquidated damages to Ocean Rig for late delivery at a rate of $75,000/day per rig to a maximum of $7.5 million per rig. Ocean Rig also has agreed to pay to Friede Goldman an early completion bonus of $1 million per rig if the rigs are delivered ahead of schedule.

Seven Seas Petroleum Inc. shut in the Guaduas oil field in Colombia for a pressure build-up test that will be used to estimate yearend 2000 oil and gas reserves. The field has produced more than 400,000 b/d of oil since Aug. 9. Seven Seas intends to resume production by truck in early January.

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