John Fredriksen-backed rig funding firm Northern Drilling will search permission to attraction towards a ruling by a London tribunal after shedding its preliminary declare towards Hanwha Ocean, previously DSME, over cancelled resale contracts for 2 ultra-deepwater drillships.
The Oslo-listed firm mentioned in a submitting that it plans to problem the ruling “on grounds of great irregularity”.
“If the courtroom grants permission to attraction the awards on some extent of regulation, an attraction listening to will comply with. Nevertheless, no such permission is required to problem the awards on grounds of great irregularity,” Northern Drilling famous.
Northern Drilling has no drilling models in operation or beneath development and its actions primarily relate to claims from the termination of the contracts for 3 drilling models. The deal for the third unit, beforehand often called West Cobalt, was terminated in October 2019.
The corporate revealed plans to boost recent funds by means of a number of fairness placements, with the primary one anticipated to be between $3m and $3.5m, bus mentioned that the entire funding wanted to succeed in a conclusive end result “is anticipated to be considerably greater”.
In 2021, Northern Drilling terminated offers with former DSME for the West Libra and West Aquila drillships, citing delays in supply in addition to a repudiatory breach of contracts. The deal was struck in Could 2018 at $296m for every drillship, with deliveries scheduled for January and March 2021 or earlier.
The corporate’s subsidiaries made advance funds of $180m and mentioned they might declare a refund of the installment paid, plus curiosity and damages. DSME disputed these claims and commenced arbitration proceedings in London, claiming it’s entitled to retain the quantity paid and apply it towards losses on account of the termination. Northern Drilling’s claims have been dismissed in September, whereas the choice on Hanwha’s claims has but to be decided.