DSME Files Complaint with LMAA Over Songa Offshore's Newbuild Semisubs

South Korea's Daewoo Shipbuilding & Marine Engineering (DSME) revealed that it is seeking arbitration for Songa Offshore to compensate the shipbuilder for losses it incurred as construction of the semisubs were delayed due to faulty designs provided by the Norwegian firm, local media The Korea Times reported Wednesday.

DSME has filed the complaint against Songa Offshore with the London Maritime Arbitrators Association (LMAA).

"We incurred nearly a $855 million (KRW 1 trillion) loss from the delayed construction of four oil-drilling ships ordered by Songa, due to the Norwegian firm's faulty design ...  However, it has not acknowledged its mistakes and refused to pay compensation. So we had to ask the LMAA to decide on the matter," a DSME spokesman said, as quoted in The Korea Times

Songa Offshore ordered four semisubs from DSME between 2011 and 2012, with the first -- Songa Equinox (mid-water semisub) -- delivered in June and the remaining three to be handed over in the coming months.

"Regardless of the arbitration, we will complete and deliver the remaining three ships to Songa," the spokesman said.



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