Bergen Group on Thursday submitted an arbitrary subpoena against Borgland Dolphin Pte. Ltd (Dolphin) due to lack of payments from the rig project, the Borgland Dolphin, completed in the first quarter of 2015.

According to Bergen Group’s second quarter 2015 interim report, the company resolved on August 27, 2015, to submit an arbitrary subpoena against Dolphin connected to missing final settlement after the drilling rig Borgland Dolphin’s yard stay at Bergen Group Hanøytangen’s yard at Askøy outside Bergen during the autumn/winter of 2014-15.

Upgrades and 5-year Class Renewal Survey for the Borgland Dolphin started in October 2014 in the dry-dock facility at Hanøytangen and was completed in end of February 2015.

The dispute particularly relates to payment for work related to a significant extension of the project. The claim is ca NOK 190 million ($22.9 million). The case is assumed to be treated by the court of arbitration during Q2 2016, the company said.

Contractors’ claims

The missing final settlement from this project has caused a number of subcontractors for Bergen Group Hanøytangen not to get their full settlement for provided services either, Bergen Group has said.

Bergen Group Hanøytangen AS is owned by Bergen Group Offshore AS, which again is owned 100 % by Bergen Group ASA.

“There is currently an ongoing dialog with the largest subcontractors regarding the handling of this situation until clarification of the final settlement is present,” said Bergen Group.

Bergen Group Hanøytangen has received a petition for bankruptcy from one of the subcontractors of the project (Radøygruppen AS) of NOK 4.5 million ($542 500). The court hearing is scheduled for September 8, 2015.

In January the company MCS Group sued Bergen Group Hanøytangen, demanding NOK 82 million ($9.9 million) for what they claim to be improper termination of a contract connected to the Borgland Dolphin project. Bergen Group has asked for the case to be transferred to the court of arbitration, and the claim has been upheld by the district court. Bergen Group disputes the claim, and has not made any provisions connected to the outcome of the arbitration proceedings, which are expected to be resolved in Q1 2016.

Borgland Dolphin

The rig is owned by Borgland Dolphin Pte Ltd and operated by Dolphin Drilling A/S. Dolphin Drilling’s parent company is Fred. Olsen Energy ASA.

Borgland Dolphin is a semi-submersible drilling rig of an Aker H-3 type. It was built at Harland & Wolff in Belfast, Northern Ireland in 1977 and underwent extensive upgrades in 1999. The rig received an Acknowledgement of Compliance (AoC) in September 2004.

Source: www.offshoreenergytoday.com

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