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.
WHAT DO YOU THINK?
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.
- Gunvor CEO Sees Russian Refining Capacity Taking Hit from Drone Strikes
- Sinopec Engineering Posts Higher Annual Petrochemicals Revenue
- Subsea7 Secures Contract to Service Woodside's Trion
- These Factors Helped Brent Oil Price Break Above $85
- Imperial Pipeline in Winnipeg Goes Offline for Three Months
- Adnoc Inks Supply Deal for Ruwais LNG Project with Germany's SEFE
- Gaz System to Acquire Gas Storage Poland
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension