Claims and counterclaims stack up between DSME and Songa Offshore

Claims and counterclaims stack up between DSME and Songa Offshore

Lawyers for Daewoo Shipbuilding & Marine Engineering (DSME) and Songa Offshore will be busy for months as the two battle out contract cancellations and mull legal action.

DSME has moved to sue Songa Offshore for a total of $172m over its building of the Songa Endurance, a Cat D rig. The Korean yard had earlier this month sought to sue Songa Offshore for $179m over another rig under construction at the yard, Songa Equinox.

Both claims relate to cost overruns which DSME says is down to inherent errors and omissions in the design documents.

Songa Offshore has dismissed the claims and is now considering a counterclaim of “significant magnitude” since its four rigs under construction at DSME are all now likely to be delivered late. Details of any counterclaim will be released shortly, Songa Offshore said in a filing to the Oslo Bors.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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