Friede ends dispute with Ocean Rig over two semis

Friede Goldman Halter Inc., Gulfport, Miss., Monday announced it signed an agreement with Ocean Rig ASA, Oslo, resolving contract problems for the completion and delivery of Ocean Rig's two Bingo 9000 rigs. Meanwhile, Ocean Rig has dropped arbitration proceedings it initiated in London earlier this month.


By the OGJ Online Staff


HOUSTON, Mar. 12
�Friede Goldman Halter Inc., Gulfport, Miss., Monday announced it signed an agreement with Ocean Rig ASA, Oslo, resolving contract problems for the completion and delivery of Ocean Rig's two Bingo 9000 rigs.

Earlier this month, Friede Goldman suspended work on the two fifth-generation semisubmersibles being outfitted at its Pascagoula, Miss., shipyard. That work was resumed Monday.

The Bingo 9000-1 was slated to leave the Pascagoula shipyard for sea trials this month and the Bingo 9000-2 in June. No revised schedule was announced.

Ocean Rig agreed to pay Friede Goldman a contractually established rate for equipment, personnel, and labor to cover the costs of completing the project. Friede Goldman will not have financial responsibility for the rigs.

Ocean Rig has withdrawn arbitration and other legal procedures initiated in London when Ocean Rig halted construction (OGJ Online, Mar. 2, 2001).

In other news, Friede Goldman reported a fourth-quarter net loss before extraordinary items of $71.9 million, or $1.48/share.

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