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DSME seeking arbitration against Songa Offshore

South Korea’s shipbuilding, or in this case, offshore rig building giant, Daewoo Shipbuilding and Marine Engineering Co. Ltd. (DSME) is seeking arbitration against Songa Offshore, an offshore drilling contractor.

According to Songa Offshore, which broke the news, DSME, which is building three drilling rigs for Songa Offshore, has delivered notices of arbitration regarding the construction contracts for Songa Offshore’s Cat D semi-submersible drilling rigs.

“No details regarding the dispute have been included by DSME in the notices,” Songa Offshore said in a statement.

Songa did provide some background, pointing back to its first quarter 2015 interim financial report, where it said DSME had experienced significant delays and cost overruns during the Cat D project.

“Irrespective of that, the Company continues to be of the view that any attempt to recover cost overruns is of no merit and will defend its position vigorously. Further details will be provided as and when appropriate,” Songa Offshore said in a statement.

After months of delays, DSME last month delivered the first of four Cat D rigs, the Songa Equinox, a sixth generation, high specification, harsh environment, midwater rig designed for year around drilling. All four rigs will be chartered by Statoil for eight years, and they will provide services to the Norwegian Coast, the North Sea, and Arctic regions.

Offshore Energy Today has reached out to Songa Offshore, seeking more details on the cost overruns and rig delays. We will update the article should we get a response.

Offshore Energy Today
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Offshore Energy Today
Published on:
July 15, 2015
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http://www.offshoreenergytoday.com/dsme-seeking-arbitration-against-songa-offshore/
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