MIS settles rig delivery dispute

Maritime Industrial Services (MIS) has ended its contractual dispute with MEJU concerning delivery of a new jackup drilling rig, Hull106.

Offshore staff

DUBAI, UAE -- Maritime Industrial Services (MIS) has ended its contractual dispute with MEJU concerning delivery of a new jackup drilling rig, Hull106.

The settlement agreement with MEJU, signed in May, and the associated construction agreement for the rig, took effect yesterday.

MIS has received a payment of $30 million under a new contract to complete construction and delivery of Hull 106. Both parties have withdrawn all claims and counter-claims, and arbitration and all related legal action has ceased.

A balance of $ 29.5 million will be paid on delivery of the rig, scheduled for next spring.

MIS is now the sole owner of sister rig Hull 108, which is around two thirds complete.

“We are delighted with today’s milestone which has allowed MIS to resume work on this rig and put the arbitration well behind us,” said Kevin Hudson, managing director

“Furthermore, MIS’ ownership of Hull 108 provides the Group with a significant opportunity for additional value creation.”

11/03/2010

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