Ezion may take over rig operations after legal tussle with Atlantic Marine

Discussions are underway with an oil major.

Ezion revealed that it may take over the operation of three rigs that are currently operated by Atlantic Marine Services (AMS) for Maersk Oil.

Ezion and AMS are embroiled in a legal spat over the rigs, with AMS alleging that Ezion has induced Maersk to breach contract charter ageements.

In a statement to the SGX, Ezion reported that it has received feedback that AMS has failed to meet their contractual and operational obligations and is currently in discussions with the oil major, Maersk Oil, on how to better serve its requirement.

“Such discussions may include the Group taking over the operations of the three Service Rigs. The suit has arisen as a result of this development as AMS has objected to the idea of the Group taking over the operations of the three Service Rigs and has threatened to take whatever actions to stop the communication between the Group and the Oil Major,” Ezion stated.

“The suit is seeking from the Court an injunction restraining the Group from communicating with the Oil Major to terminate its contract with AMS without putting a monetary value to the claim. The Group will continue with its discussions with the Oil Major and whatever the outcome, is not expected to have a material impact on the Group’s earnings per share or net tangible assets per share for the financial year ending 31st December 2015,” added Ezion.