Songa Offshore SE : Cat D update (1)

On November 20, 2015 Songa Offshore received claim submissions from DSME related to Songa Endurance, the second  Cat D rig, in which DSME asserts a claim of USD 150 million, along with a request for repayment of liquidated damages in a total amount of USD 22 million. The claim is substantially similar to the one submitted for Songa Equinox on November 16, 2015 and relates to alleged cost overruns and additional work in relation to Songa Endurance rig due to what DSME alleges were inherent errors and omissions in the design documents (as often referred to as the FEED package).

Songa Offshore has performed an initial review of the claim and does not consider that there is any substance to the claims asserted by DSME. As previously announced, the Company is confident of its position, since it is of the view that DSME is responsible for the delays and any attempt to recover cost overruns is of no merit due to the "turn-key" nature of the construction contract. Songa Offshore has obtained legal opinions from highly reputable law firms in the UK and Norway and from a Queen's Counsel all of which confirm the Company's position.

Further details will be provided as and when appropriate.

23 November 2015
Limassol, Cyprus

For further information, please contact:
Jan Rune Steinsland, CFO ([phone])

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

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Source: Songa Offshore SE via Globenewswire

HUG#1968596