COSL and Statoil reach settlement agreement

Beijing: China Oilfield Services Limited (COSL) has announced that it has reached a settlement agreement with Statoil concerning a dispute related to stand-by fees of two semi-submersible platforms.

COSL filed a lawsuit with Norway Stavanger District Court in 2013 against Statoil, claiming compensation of approximately RMB924m and overdue interest.

Upon acceptance by the court as a case eligible for further proceedings, the two parties conducted settlement negotiations according to procedures specified by the court.

Statoil recently agreed to a one-off settlement sum of $65m payable to COSL to release both parties from the previous disputes.

“After taking into account the ongoing business relationship between the two companies, also considering potential litigation costs, and uncertainties and risks of the final outcome, COSL has agreed to the terms of settlement, and has undertaken to withdraw the lawsuit against Statoil from the Norway Stavanger District Court. The settlement sum will be recognized as revenue for the current period,” COSL said in a release. [17/06/14]

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