Akastor’s Subsidiary Wins $101M Case Against Seatrium's Jurong Shipyard

Thursday, April 18, 2024

MHWirth, a subsidiary of Norwegian oil services investment firm Akastor, has received an arbitration award issued by a tribunal in a dispute with Seatrium’s subsidiary Jurong Shipyard over the termination of four drilling rig unit contracts.

As part of the ruling, MHW has been awarded an amount of $101 million as payment of termination fees.

In addition, MHW has been made eligible for the reimbursement of legal costs and certain suspension costs (totaling about $7 million), as well as interest.

Although the drilling rig unit contracts are held by MHW, which is a wholly owned subsidiary of HMH Holding, Akastor holds full financial interest in these contracts as this was not included in the transaction when HMH was created in 2021.

To remind, HMH was created through the merger of Baker Hughes’ Subsea Drilling Systems business and Akastor’s MHWirth, to form a global offshore drilling equipment company. Baker Hughes and Akastor own equal equity in HMH.

The drilling rig unit contracts were originally entered into in 2012 and were terminated by Jurong in 2021 and 2022 after having been suspended for many years.

The contracts form part of the intended deliverables under the drilling rig contracts that Jurong had entered with Sete Brasil and where a full and final settlement agreement was reached between Jurong and Sete Brasil in 2019.

Pursuant to the rule of of the Singapore International Arbitration Centre (SIAC), the arbitration award is full and final. However, the parties may within 30 days of receipt of the award request the tribunal to correct any error in computation, any clerical or typographical error or any error of a similar nature, Akastor noted.

Categories: Industry News Activity Europe Asia Drilling Rigs Oil and Gas

Related Stories

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

MODEC and Terra Drone Renew FPSO Drone Inspection Partnership

Yinson Production Closes $1B Investment to Drive Further Growth

French Oil Major Acquires Interests in Multiple Blocks in Southeast Asia

UK Firm Secures Exploration Extension for Two Blocks off Vietnam

Aker Solutions, PTAS JV Hooks Brownfield Services Extension off Brunei

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Fugro Lands Deepwater Gas Field Job in Southeast Asia

Current News

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Petronas Expands Suriname Portfolio with Deepwater Block Acquisition

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

Yinson Production, “K” LINE Target Europe's CCS with FSIU and LCO2 Solutions

Woodside Agrees Long-Term LNG Supply with Petronas Unit

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com