AsiaFinance and InsuranceOffshore

Swiber files petitions to stop pay-out of $105m in bank guarantees

Swiber Holdings has filed court petitions for injunctions against the payment of over $105m in bank guarantees, which have been called on by contractees of its subsidiary Swiber Offshore Construction (SOC).

The group said SOC had written to the parties to tell them their calls on the bank guarantees were “wrongfully made”.

“SOC is also in discussions with lawyers on the potential steps that may be taken to preserve its rights in relation to the bank guarantees that have been paid out,” Swiber said in an exchange filing.

Five bank guarantees totalling $94.48m and two bank guarantees amounting to approximately INR 644.2m ($9.73m) have been called upon by India’s state-owned Oil and Natural Gas Corp (ONGC). Of these facilities, a bank guarantee worth INR 307.5m ($4.64m) has already been paid out by the relevant bank.

The guarantees relate to ONGC’s Daman Development Project and several related pipeline and platform projects in which Swiber Offshore Construction was a contractor. ONGC received approval in 2014 to invest $863.2m in the Daman Development Project, which will boost natural gas and condensate production at the Tapti Daman Block in the Arabian Sea.

Indian engineering, procurement and construction (EPC) company Punj Lloyd has called on a bank guarantee for $1.475m, which has already been paid out. The guarantee was provided for work in ONGC’s WO16 cluster project and SB-14 pipeline project in offshore India.

Separately, Swiber Holdings today said the total sum of claims received by the group is around $99m of August 4. The company said it is currently seeking legal advice.

The Singapore offshore vessel operator, which backtracked from liquidation to seek judicial management 10 days ago, has been handed a guideline on how to proceed towards judicial management.

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Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
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