SHARJAH -- Maritime Industrial Services Co. (MIS) has settled a contract dispute with Mosvold Middle East Jackup (MEJU). The dissention was in arbitration since last August.
Under the terms of the agreement, MEJU enters a new contract with MIS for the construction and delivery of Hull 106 for total outlay of $160 million, to be settled as follows:
• $100.5 million in cash, originally paid by MEJU as an advance payment on Hulls
106 and 108, to be reassigned wholly to Hull 106
• $30 million to be paid in cash on the date that the agreement becomes effective, likely during July
• The balance to be paid on delivery, or, subject to interest and an arrangement fee, no later than June 30.
The rig will remain in MIS’ possession until all sums due under the new contract are paid. On the effective date, both parties will withdraw all claims and counterclaims under the existing agreements concerning Hulls 106 and 108, and the arbitration and any related legal action will formally cease.
Kevin Hudson, managing director of MIS, said: “I am very pleased that MEJU and MIS have been able to resolve this costly dispute in a positive and amicable manner. I am even more delighted that MEJU has, through its decision to invest in a new contract, demonstrated its confidence in MIS’ ability to deliver another first class rig to match the exacting demands of the drilling market.”
MIS resolves jackup dispute
Maritime Industrial Services Co. (MIS) has settled a contract dispute with Mosvold Middle East Jackup (MEJU).