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.



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit www.riglogix.com.
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  How to Become a Safety Engineer (Sep 18)
 -  How to Become a Geologist (Sep 15)
 -  Oil, Gas Industry Leadership Group to ... (Sep 14)
 -  CB&I Wins China PDH Unit Contract (Sep 11)
 -  What Kind of Salary Potential Do Geote... (Sep 8)


Most Popular Articles

From the Career Center
Jobs that may interest you
Project QA-QC Supervisor/Engineer
Expertise: Drilling Consultant|Environmental, Safety & Training|HSE Auditing
Location: Minot, ND
 
Floorhand
Expertise: Floorhand / Roughneck
Location: Fruita, CO
 
Drilling Engineering Manager - Delaware Basin
Expertise: Drilling Engineering|Drilling Manager|Engineering Manager
Location: Midland, TX
 
search for more jobs

Brent Crude Oil : $55.48/BBL 0.25%
Light Crude Oil : $49.91/BBL 0.04%
Natural Gas : $3.15/MMBtu 4.30%
Updated in last 24 hours