Crisis talks between the Belfast shipyard Harland & Wolff and its US customer Global Marine were continuing in London last night without either side prepared to comment on progress.
There are unconfirmed reports that H & W's owner, Scandinavian based Fred Olsen Energy, is considering an offer by Global Marine. Many of the US company's representatives are said to have left London while some of H & W's senior management returned to Belfast for internal discussions yesterday afternoon. They will have to decide whether the settlement on offer is sufficient for the yard to refinance its business and complete the two drilling ships ordered by Global Marine.
Observers believe the next 24 hours will be crucial. One suggestion, in the event of the troubled yard going into receivership, is that Global Marine might seek to complete the vessels itself by recruiting the workforce directly.
A spokesman for Texas-based Global Marine said yesterday that the two sides remained in contact and negotiations would continue overnight.
"We will stay in the talks until a mutually satisfactory agreement is reached. But we are only the customer and we feel it is up to H & W to make any official statements," he added. The talks had been due to finish last Thursday. The fact that they have continued into this week has widely been interpreted as a positive sign.
The dispute centres on two drilling ships, worth £200 million sterling each, which H & W is building for Global Marine. According to the shipyard, the US company has so far paid only £160 million as well as £2 million for "small extras". The main bone of contention is, however, the £133 million of changes which Global is alleged to have requested to the original order and for which it now refuses to pay.
Trade unions met representatives of H & W's parent company, Fred Olsen Energy, and of Global Marine at the end of last week. The chairman of the Confederation of Shipbuilding and Engineering Workers Unions, Mr George Matchett, said they remained optimistic that a settlement was on the horizon. But he said the trade unions were "deeply unhappy" about the secrecy which has shrouded the negotiations in London. "Up to date, we have heard nothing. The unions are deeply unhappy that the situation has not yet been resolved," he added.
