Problems continue in the negotiations between Sembcorp Marine and Marco Polo Drilling. Cracks continue to be discovered on the rig and the discussions grow uglier day by day. The dispute is now headed to mediation, which is a last-ditch attempt to resolve the conflict and move forward without court intervention.

According to Marco Polo Drilling, various testing measures revealed 70 and 180 new cracks on the rig on two separate testing occasions. The majority of the cracks are located on or near the weld joints on both the external and internal surfaces of the spud cans.

In a statement released by the drilling company describing the cracks, there was also a rebuttal to SembMarine’s latest answer, alleging that PPL has elected to affirm the contract and it is still inconsistent with the first announcement made at an earlier date. Marco Polo Drilling considered the contract invalid and an afterthought to pursue payment of the second disbursement of the contract price. They claim there is no such payment due following the termination of the contract in mid-November. Finally, the letter announced Marco Polo has advanced its process to the second stage and mediation is set to begin.

According to the company, should there be a refusal to mediate, Marco Polo will proceed to arbitration. Both parties appear to be entering mediation from a point of contention and hostility, possibly making it more difficult to negotiate a decision. Doing so could save a great deal of time and money for both, so there is hope the process will be successful.