Coastal Contracts files $5.65m claim against CIMC Raffles Offshore

Coastal Contracts’ subsidiary Thaumas Marine (TM) has filed a statement of claim for $5.65m against Yantai CIMC Raffles Offshore and Dynamic Driller in an ongoing arbitration in Singapore related to a botched jack-up drilling rig contract.

TM filed a notice of arbitration with the Singapore International Arbitration Center in October and is also claiming interest, legal expenses and any further damages awarded by arbitrators. The respondents may now file a statement of defence and any counterclaims.

CIMC Raffles Offshore and Dynamic Driller was unable to deliver a JU 2000E F&G design jack-up drilling rig to Thaumas Marine before the cancellation date of June 30, 2015 according to the shipbuilding contract.

The rig was accepted to be technically ready for delivery on September 11, 2015, some 73 days after the cancellation date, for which TM wants liquidated damages of $3.65m from the two counterparties.

TM also found some of the rig’s parts and equipment significantly deviated from the agreed technical specifications as agreed, for which the company is claiming an additional $2m.