Rowan Companies, Inc. reported that an agreement has been reached to resolve a dispute over the Rowan Gorilla V contract between its subsidiary, British American Offshore Limited (BAO), and Amoco (UK) Exploration Company (Amoco UK), now owned by BP p.l.c.
The settlement agreement was made between BP Amoco Corporation, BP Amoco p.l.c., BP Exploration Operating Company, BP America, Inc., Amoco (UK) Exploration Company ("Amoco UK"), Amoco Production Company, Amerada Hess Limited, Amerada Hess Corporation and Enterprise Oil p.l.c. (collectively, the "BP Amoco Affiliated Parties") on the one hand, and Rowan Companies, Inc., LeTourneau
, Inc. and British American Offshore Limited ("BAO") (collectively, the "Rowan Affiliated Parties") on the other.
Without the admission of fault by either party, the essence of the agreement is as follows:
"To the extent that any negative allegations and/or communications have been made by any representative of any of the BP Amoco Affiliated Parties relating to Gorilla V, those allegations and communications shall be and are hereby retracted;" the BP Amoco Affiliated Parties shall drop their Application for Permission to Appeal the English Court judgement; the Rowan Affiliated Parties shall dismiss the lawsuit in Houston, Texas; the BP Amoco Affiliated Parties shall pay Rowan a total of $175 million, comprised of $90.8 million previously awarded by the English court plus $84.2 million.