Oslo-listed Ability Drilling says it is cancellling its order with TTS Sense for Rig no. 1 - filing a new claim of NOK 141.5m ($22.4m) against TTS - and it might cancel orders for Rig no. 3 and Rig no 4.

The new claim brings to a total of NOK 281.5m ($44.4m) the level of claims Ability has mounted against TTS.

The announcement is the latest move in the struggle between Ability, which has been placed by the Olso Bors on its Special Observation list over its share price, and TT.

Earlier in May Ability Drilling stopped payments to its creditors as part of its bid to conserve cash during a dispute with major supplier TTS.

TTS counterclaim, bankruptcy claim against Ability

At the end of last month Ability anounced it had cancelled an order for a new land rig which was to have been built by TTS in the Netherlands, blaming the cancellation on the inability of TTS to complete guarantee work within an agreed time limit. It then launched a NOK 140m claim against TTS for payments made on the rig so far.

TTS counterclaimed that such delays were the fault of Ability and last week filed a bankruptcy claim against Ability.

In the latest statement, Ability says it filed the new claim of NOK 141.5m against TT Sense, for which TTS Marine provided a parent company guarantee.

"Furthermore, Ability Drilling is also evaluating cancellation of Rig no. 3 and 4," it said.

Rig no. 1 is currently in Dubai, in the United Arab Emirates, awaiting completion of guarantee work.

Failure to complete claim

"The cancellation of Rig no. 1 follows TTS Sense's failure to complete the guarantee work within the agreed time limit," Ability said.

The new financial claim related to payments on Rig no. 1 made so far.

Rig no. 3 and 4 are currently in TTS Sense's locations at Jåttå, Stavanger, on Norway's west coast, awaiting completion by TTS Sense.

"Due to poor quality of work rendered and poor or inconsistent reporting format combined with missing traceability related to welding documentation on work rendered by TTS Sense and its subsuppliers, cancellation of these rigs will be evaluated," Ability added.

"The total claim of NOK 281.5 million filed so far against TTS Sense and its parent company TTS Marine follows inadequate deliveries from TTS Marine's subsidiary TTS Sense with respect to price, guarantee and quality."