Singapore’s Jurong Shipyard, a subsidiary of Seatrium, has lost an arbitration over the termination of drilling equipment contracts related to four offshore rigs.
MHWirth, a unit of Norwegian oil-services investment company Akastor, has been awarded around $101.3m by the Singapore International Arbitration Centre (SIAC) as payment of termination fees.
The contracts dating back to 2012 were terminated by Jurong in 2021 and 2022 after having been suspended for many years. They were part of the intended deliverables under the drilling rig contracts that Jurong had entered with Sete Brasil and where a settlement deal was reached between the two parties in 2019.
Akastor said Thursday the arbitration award is full and final and that MHWirth has also been awarded reimbursement of about $7m in legal costs and certain suspension costs, as well as interest which will be calculated and resolved in due course.
