Date: 25 May 2009
Ability Drilling has today submitted a cancellation notice to TTS
Sense, regarding rig no. 1. Together with the cancellation notice,
Ability Drilling has filed a new claim of NOK 141.5 million against
TTS Sense, for which TTS Marine has provided a parent company
guarantee. Furthermore, Ability Drilling is also evaluating
cancellation of rig no. 3 and 4.
Rig no. 1 is currently in Dubai, in the United Arab Emirates,
awaiting completion of guarantee work. The cancellation of rig no. 1
follows TTS Sense's failure to complete the guarantee work within the
agreed time limit. Ability Drilling has filed a claim of NOK 141.5
million against TTS Sense, related to payments on rig no. 1 made so
far. Ability Drilling has previously announced that the company has
received a NOK 75 million Letter of Credit related to the sale of rig
no. 1 to an Iraqi JV partner. As a direct consequence of TTS Sense's
delayed completion of the guarantee work, combined with TTS Sense's
actions last week by filing a bankruptcy petition against Ability
Drilling and TTS Sense's refusal to provide service to the new owner
of the rig, the Iraqi JV Partner has withdrawn from the agreement
with Ability Drilling. Hence, the Letter of Credit has no longer any
value.
Rig no. 3 and 4 is currently in TTS Sense's locations at Jåttå,
Stavanger, awaiting completion by TTS Sense. Due to poor quality of
work rendered and poor or inconsistent reporting format combined with
missing traceability related to welding documentation on work
rendered by TTS Sense and its subsuppliers, cancellation of these
rigs will be evaluated.
The total claim of NOK 281.5 million filed so far against TTS Sense
and its parent company TTS Marine follows inadequate deliveries from
TTS Marine's subsidiary TTS Sense with respect to price, guarantee
and quality.
* TTS Sense has not completed deliveries of rigs nor guarantee work
on any of the 250 ton rigs ordered by Ability Drilling
* TTS Sense refuses to deliver service to buyers of Ability
Drilling's rigs with the effect that the rigs can not be sold
* We believe that TTS Sense has deliberately invoiced way beyond
what they are entitled to, in order to increase their claim
against Ability Drilling
For further information, please contact:
CEO Hans Petter Eikeland, phone +47 56 32 43 43, or +47 93 20 81 77
Chairman of the Board : Geir Nordahl-Pedersen, phone +47 901 401 30
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