Ability Drilling cancels rig no. 1 - new claim against TTS Sense of NOK 141.5 million

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.

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Ability Drilling and TTS Sense's refusal to provide service to the new owner of the rig, the Iraqi JV Partner has withdrawn from the agreement with Ability Drilling.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.

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