Revenuesat the company were down 3% year-on-year to just under $230m, but costs skyrocketedfrom $93m to $173m.

OceanRig blamed part of the increase on the $43m spent on the 10-year class surveyfor the drilling rig Eirik Raude.

It also emerged that a twelve month chartercontract for the same semi-submersible drilling unit was cancelled earlier thisweek.

EuropeanHydrocarbons is said to have unilaterally cancelled the charter and under theterms of the deal it will have to pay Ocean Rig an early termination fee of$13m.

“Duringthe