BP Amoco Terminates Rig Contract with Rowan

Offshore driller Rowan Cos. (RDC Quote) and newly minted oil behemoth BP Amoco (BPA Quote) are feuding over a Gorilla.

Wednesday, Rowan said BP Amoco terminated its contract with Rowan for the just-delivered Gorilla V harsh-weather jackup rig. The oil company says Rowan breached its contract, originally signed in late 1997, by delivering the giant rig with faulty equipment and three months late.

Rowan countered, saying the equipment was in working condition and was delivered within an acceptable window. The driller says it has filed suit against BP Amoco for breach of contract and punitive damages. ...