UAE-based MIS Group, a diversified engineering and contracting group focused on the energy sector, reported that its settlement agreement with MEJU and the associated platform construction agreement for Hull 106 became effective on Tuesday.
MIS has now received a payment of $30 million under a new contract to complete the construction and delivery of Hull 106, and the contractual dispute with MEJU is ended; both parties have withdrawn all claims and counterclaims under the existing agreements and the arbitration and all related legal action has formally ceased.
A balance of $ 29.5 million will be paid on delivery of the rig which is scheduled for Q2, 2011.
MIS is now the sole owner of Hull 108, which is approximately two thirds complete.
“We are delighted with today’s milestone which has allowed MIS to resume work on this rig and put the arbitration well behind us,” commented Kevin Hudson, Managing Director of MIS. “Furthermore, MIS’ ownership of Hull 108 provides the Group with a significant opportunity for additional value creation.”
