Talks between the Belfast shipyard Harland & Wolff and its US customer Global Marine were continuing at a secret location in London last night, giving rise to hopes that a settlement could be within reach.
The face-to-face talks were scheduled to end on Thursday, but the fact that they were extended beyond the deadline led insiders to believe that progress had been made. A spokesman for Texas-based Global Marine said the company felt it was very much in its own interest to settle the dispute.
"We have entered these talks in good faith and will do everything we can to assist H&W through their current difficulties," the spokesman said.
"It is in our own interest for the yard to stay open and complete the two drilling ships we have ordered from H&W. Global Marine is very much relying on their timely delivery in the first and third quarters of next year. We feel we owe it to our shareholders to put our arguments with H&W to one side and help them in every way we can to complete this order," he added. A spokesman for H&W yesterday would only confirm that talks were "ongoing".
Global Marine had never questioned the excellent standard of work carried out by the Belfast shipyard. "We are very happy with the standard of work. Moreover, it would not be financially viable for us to transfer those ships to another yard to be finished there. But we need to determine whether H&W's parent company, Fred Olsen Energy, sees a future for the yard," the spokesman added. Global Marine continues to reject claims by H&W that it owes the shipyard £133 million sterling for changes it is alleged to have ordered to the two drilling ships. According to H&W, Global Marine has so far only paid £160 million towards the vessels, worth £200 million each, as well as £2 million for "small extras". "We do not accept the validity of this claim. We realise the dispute will go to arbitration, a process which will take a very long time, possibly up to two years," the Global Marine spokesman said.
He suggested that any announcement on a breakthrough in the negotiations would come from H&W, but that both companies were prepared to talk until they reached a compromise.
"It is really up to H&W to announce a refinancing plan and tell their workers what the future holds. But we are prepared to negotiate until a mutually acceptable settlement is reached, all through the weekend, if that's what it takes," the spokesman concluded. Trade union leaders met representatives of Fred Olsen Energy and Global Marine in London on Thursday. H&W's workers have been told their wages would be paid up to November 25th, but if no solution can be found between the yard and its US customer, up to 3,000 employees could face a bleak Christmas.
