Harland and Wolff's Norwegian parent, Fred Olsen Energy, has played down the financial impact of a £90 million sterling (£104 million) overrun on the construction cost of a new oil rig.

The Belfast subsidiary, which is contracted to build part of the rig for the US firm Global Marine International, has made provisions for its share of the overrun and may not have to bear any such costs in the future, according to Fred Olsen senior vice president, Mr Lief Dons.

Mr Dons stated that the total overrun will be depreciated over the long-term life of the rig and Harland and Wolff. "It is not as dramatic as it appears and the future for the Belfast yard remains fairly good," he said. Harland and Wolff employs 1,700. The contract to build two new drillships was part of a diversification plan at the plant.