Taking advantage of the crisis in the offshore sector, Cary Moomjian, president of consultancy and expert witness services provider CAM OilServ Advisors, has created a new division to provide expert witness services in disputes relating to offshore rig shipyard construction contract cancellations, a very hot topic at present.
Having served as VP, manager of contracts and general counsel for two major international offshore drilling companies for over three decades, Moomjian has been involved in all phases of offshore drilling rig shipyard construction contracts including disputes arising prior to, upon or following rig delivery.
“Offshore drillers are in a survival mode and are unable to secure drilling contracts for many of the rigs they ordered” Moomjian commented, adding: “Many drilling contractors have entered into agreements with shipyards to extend rig delivery for several months or years. Now, some drillers are declaring shipyards in breach of contract.” He noted that over 25 offshore rig shipyard contracts already have been delayed or terminated. Most of the terminated contracts addressed construction of deepwater rigs.
Moomjian believes resolution of shipyard contract disputes will be protracted and complex. He noted that shipyard contracts contain a myriad of provisions that are likely to come under scrutiny, including permitted delay terms and provisions addressing matters such as change orders, new regulatory requirements, builder and owner obligations, and compliance with specifications.
