COSL files lawsuit against Statoil over rig chartering contract

In an announcement to the Hong Kong Stock Exchange, COSL said its subsidiary COSL Offshore Management filed a statement of claim against Statoil with Oslo District Court of Norway on 14 December 2016, through law firm Wikborg, Rein & Co.

“In March 2016, Statoil terminated the drilling contract… with no rate. The contract was performed by COSLInnovator owned by COSL Drilling Europe. The company strongly disagrees with the decision of Statoil and has communicated with Statoil on the subject matter,” COSL stated.

“However, the differences between two parties have yet to be resolved,” it said.

In March this year, Statoil said it has the contractual right to terminate the chartering contract of COSLInnovator. The rig was operating in the Troll Field of Norway.

“COSL Offshore Management has claimed that Statoil’s termination of the contract was unlawful and has claimed the contract to be maintained,” COSL said.

At present, Statoil is operating another rig owned by COSL Drilling Europe, COSLPromoter, in the Troll Field. The operation of the rig was briefly halted during the first two weeks of March when Statoil decided to suspend work, only to resume the chartering contract after an agreement was worked out between COSL Drilling Europe and Statoil.