FGH And Ocean Rig Sign Cooperation Agreement

Friede Goldman Halter (FGH) and Ocean Rig have signed a cooperation agreement related to the completion and delivery of Ocean Rig's Bingo 9000-1 and Bingo 9000-2 offshore drilling rigs, which are currently being outfitted and Friede Goldman Offshore's Pascagoula, Miss. shipyard.

The agreement results from a joint effort of Friede Goldman and Ocean Rig to develop an acceptable plan and schedule for the completion and delivery of the two fifth-generation rigs, and marks a significant step as the two rigs near completion. This decision establishes new delivery dates for the rigs, with a delivery date for Bingo 9000-1 set for March 2001, followed by Bingo 9000-2 on June 1, 2001.

Also outlined in the agreement is a specific incentive plan geared toward the completion of Bingo 9000-2. According to terms outlined in this plan, Ocean Rig will pay an incentive bonus of up to a total of $5 million to Friede Goldman as Friede Goldman meets certain pre-determined progress targets at the end of each calendar month between now and April 15, 2001.