Northern Offshore Ltd., a Bermuda holding company which operates offshore oil and gas production as well as drilling vessels, announced yesterday that it has made the required filing the Oslo Stock Exchange in connection with its $15 million accounts receivable with LLC Gazflot, a wholly owned subsidiary of Gazprom.

Northern Offshore reported that it had completed a drilling programme for Gazflot in the Pechora Sea, offshore Northern Russia, and that it now considers the $15 million due and awaits payment from Gazflot.

In the filing Northern Offshore explained that additional amounts will be billed with the formal completion of the the demobilisation phase and that it intends to pursue its remedies for collection under the terms of the drilling contract with Gazflot.

In October, Northern Offshore announced the termination of agreements to acquire two North Sea semi-submersible drilling rigs from Transocean after it was unable to obtain consent from its lenders.

Northern Offshore's share price hit a 52 week low on Friday when the shares were traded at 2.50 Norwegian krone, less than a tenth of their 52-week high of 25.5 krone reached on April 7, 2008 when Geveran Trading, the investment vehicle of the Norwegian shipping tycoon John Fredriksen, purchased a 15-percent stake in the company.

Yesterday, Northern Offshore chief financial officer Michael Dawson declined to give any further details on the situation with Gazflot.