OHL, Songa reach settlement over Ancora

Offshore staff

OSLO, Norway -- Ocean HeavyLift ASA (OHL) has agreed with Songa Ancora Pte Ltd. on settlement of the force majeure claim regarding the heavy-lift vessel Ancora (to be renamed HeavyLift Ancora).

Songa notified OHL in late February of additional delays in the delivery ofAncora , due to a force majeure related to adverse weather conditions and conditions at the shipyard claimed to be outside the seller's control. At that time, Songa claimed a significant reduction of the penalty payments.

As part of the settlement, OHL will takeAncora on a short-term bareboat charter from Songa for mobilization to Singapore for final testing and commissioning, and where the first cargo is expected to be loaded. The vessel is expected to sail from China soon and to be ready for operation in May/June. After penalties and other agreed adjustments, OHL estimates that the final price of the vessel will be approximately $90 million, $17 million below the initially purchase price of $107 million.

05/15//2008