TTS Marine contests Ability Drilling’s termination of the contract relating to rig number 2 in the program for land rigs and work-over rigs. TTS has postponed work on rigs number 3 and 4, until Ability Drilling has met their payment obligations.
On 28 April, TTS Sense AS, a subsidiary in the TTS Group, gave notice of suspension of work on rigs number 3 and 4 of a program totalling nine large rigs and two work-over rigs to Ability Drilling ASA., on the basis of the Board’s receipt of a written statement from Ability Drilling ASA regarding the company’s suspension of payment to TTS Sense AS “until ADRL’s solvency has been secured”.
On 19 March, TTS Sense gave Ability Drilling notice of suspension of work on rig number 3 and rig number 4, as a consequence of Ability’s default on agreed terms of payment. Prior to the notification of suspension, the parties have negotiated seeking to find solutions to the financial problems causing the company’s lack of payments to TTS Sense, including conversion of debts to shares and downscaling of the building program. As these negotiations failed to provide any definite results, TTS Sense has been forced to implement suspension of the work.
In a press release dated 30 March, Ability Drilling ASA claims that their economic obligations toward TTS Sense have been fulfilled. This is not correct. On 20 January 2009, the parties entered into an agreement regarding amendments to the rig program, in which Ability Drilling undertakes to pay the company’s outstanding amount on that same date. The outstanding claims have still not been settled. In the same agreement, delivery of rig number 2 was declared. TTS Sense has later performed guarantee work on the rig. Accordingly, Ability Drilling has no foundation for termination of the contract relating to rig number 2.
Ability Drilling claims that delays and defects related to the building program is the reason behind the company’s financial problems. TTS does not share this view point, and emphasises that all of the rigs have been delivered with minor delays relative to the revised contractual delivery dates, which the parties have agreed on, on a continuous basis throughout the project. Furthermore, there are no defects on any of the rigs of such character that there is basis for any of the claims or allegations submitted by Ability Drilling.
Contact:
Johannes D. Neteland
President & CEO
Tel.: +47 918 46 906
TTS Marine ASA
Tel.: +47 55 94 74 00 / Fax: +47 55 94 74 01
