Offshore driller Ensco Rowan has announced that an arbitration tribunal has awarded the company $180m in damages as part of its proceedings against Samsung Heavy Industries (SHI) over a drillship charter contract.
The company initiated arbitration proceedings in London against SHI in 2016 for the losses incurred in connection with a drilling services agreement for Ensco DS-5 after the customer Petrobras cancelled the contract over corruption allegations.
In March, Petrobras also filed a lawsuit against SHI and demanded $249m for damages resulting from the contract. Petrobras claimed that it paid excessive charter fees under the contract.
According to the company, in January 2018, the arbitration tribunal issued an award on liability fully in Ensco Rowan’s favor, and the arbitral hearing on damages took place in the first quarter of 2019. SHI may apply to the English High Court for leave to appeal this award within 28 days from date of award.
