Hyundai Demands $167 Million To Finish Drilling Rig

Published at 09:14AM - 23/10/15

Korean based Hyundai Heavy Industries, has hit offshore drilling contractors, Fred Olsen Energy, with a notice of arbitration, demanding more money.

The move comes during the ongoing build of the Bollsta Dolphin, an ultra deepwater drilling rig, designed to operate in harsh environments.

Fred Olsen had ordered the drilling rig back in May 2012, from Hyundai Heavy Industries, at the cost of US$700 million, with delivery scheduled for March 2015.

Hyundai Heavy Industries, the world’s biggest ship builder, has now hit Fred Olsen with a ‘notice of arbitration in which it demands a further US$167 million and additional time to complete the build of drilling rig.

Fred Oslen have vehemently oppose the move buy HHI, say that HHI’s “claim is unfounded”.

The Bollsta Dolphin should already be working for Fred Olsen’s offshore drilling subsidiary, Dolphin Drilling, having already been contracted to work for Chevron, in the West of Shetland basin in the British sector.

Hyundai Heavy Industries

This is not the first time Hyundai Heavy Industries has failed to meet targets at its ship yards in recent months.  Last month, offshore drilling firm Seadrill finally gave up waiting for their half constructed West Mira offshore drilling semisubmersible, after constant delays.

Having eventually cancelled the West Mira contract with HHI, Seadrill lost a 5 year contract it had with Canada’s Husky Energy, who had in turn given up waiting on Seadrill.