Songa gives construction update

Songa Offshore ASA says its Songa Mercur semisubmersible is awaiting remaining parts at anchorage outside Singapore since mid-March. The rig equipment commissioning and testing are progressing slower than anticipated, but has been satisfactory for the most part, the company says. The project has encountered problems getting deck cranes to meet required standards. Remedial work has been initiated to fully meet requirements before final commissioning and testing, Songa says.

Offshore staff

OSLO, Norway -- Songa Offshore ASA says its Songa Mercur semisubmersible is awaiting remaining parts at anchorage outside Singapore since mid-March. The rig equipment commissioning and testing are progressing slower than anticipated, but has been satisfactory for the most part, the company says. The project has encountered problems getting deck cranes to meet required standards. Remedial work has been initiated to fully meet requirements before final commissioning and testing, Songa says.

This situation is symptomatic for the stretch in the supplier side of the industry, the company says. In this case, Songa has brought in new specialists and an alternative supplier to solve the problems. A detailed project timeline has been established, but the expected time of departure for the rig has been postponed until the end of April.

3/30/2007

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