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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: SliderOnTheBlack who wrote (58778)	1/20/2000 11:39:00 AM
From: paul feldman	Read Replies (2) \| Respond to of 95453

/20/00 - Gulfport, Miss.-Based Shipyard Reopens after Settling with Norwegian Firm -------------------------------------------------------------------------------- Jan. 20 (The Sun Herald/KRTBN)--GULFPORT, Miss.--Friede Goldman Halter will take at least a few days to decide how many laid off workers get their jobs back after the Gulfport-based ship and rig builder reached a ninth-hour agreement with a major customer on a contract dispute. "A few (laid off) workers have already started, and we will be increasing manning in the next few weeks," Friede chairman J.L. Holloway said Wednesday. The company laid off about 900 workers earlier this month in Pascagoula and Gulfport, citing a sluggish market and the expensive disagreement with Ocean Rig, a Norwegian driller, over missed delivery deadlines on two rigs. Holloway said his company will "further evaluate manning requirements" needed to meet new delivery schedules, but he wasn't specific about the number of employees that may be rehired. "We just don't have the number of people at this time or the exact day when that will happen," he said. Friede and Ocean Rig reached an agreement at 11 p.m. Tuesday, the day before Friede executives were to go to London to begin arbitration. "By avoiding litigation, it's saving lots of money and time for our key people who would have been involved," Holloway said. He would not comment on a contract dispute with another customer, Petrodrill, except to say, "We are both working feverishly to get scheduling and delivery dates worked out. We've had several talks and are progressing." Under the agreement reached Tuesday, Ocean Rig will pay Friede Goldman Halter an extra $43 million for two new rigs now valued at $313 million to settle the contract dispute. The contract originally valued the rigs at a total of $270 million. The settlement was reached without Friede or Ocean Rig admitting liability for the delayed construction of the rigs. The settlement came one week after Friede said Ocean Rig wanted compensation for delayed delivery of the rigs. Friede said the rigs, which were originally scheduled for delivery in the third and fourth quarters of last year, were late because Ocean Rig didn't provide equipment and information on time. Shares of Friede rose 1 9/16, or 27 percent, to 7 7/16 on the New York Stock Exchange. Shares of Ocean Rig fell 1.4 kroner to 31.1 in Oslo. By Lisa Monti -0- To see more of The Sun Herald, or to subscribe to the newspaper, go to sunherald.com