BW Offshore in arbitration award regarding FPSO dispute

Norwegian FPSO supplier BW Offshore has announced a successful arbitration award regarding its dispute with Addax Petroleum Exploration about dayrates payable for the hire of the FPSO Sendje Berge.

BW said on Tuesday that the company was “successful” in the dispute and that further details would be provided when the arbitration award has been reviewed in detail.

To remind, the company reported last November that Sinopec’s subsidiary Addax had not paid the full contractual rate for the FPSO for some time.

In an effort to collect unpaid dayrates for the Sendje Berge FPSO, BW Offshore submitted a claim to the arbitration tribunal during the third quarter of 2016.

In its fourth quarter 2016 report published on Tuesday, BW said that the unpaid dayrates amounted to $66.7 million.

The Sendje Berge FPSO has been operating for Addax offshore Nigeria since March 2005 and is currently under a contract which expires in 2018 or 2020 with extension options.

The Norway-based FPSO provider also said in its 4Q report that the company narrowed its net loss amid impairments of $223 million.

Offshore Energy Today Staff