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DSME files arbitration notices to Songa Offshore over rig construction

DSME files arbitration notices to Songa Offshore over rig construction
South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME) has sent notices of arbitration to Norway’s Songa Offshore in relation to the construction contracts over four Category-D rigs.

Songa Offshore said “DSME has experienced significant delays and cost overruns during the Cat-D project.”

It added that “irrespective of that, the company continues to be of the view that any attempt to recover cost overruns is of no merit and will defend its position vigorously.”

The four Cat-D rigs are built for and contracted to Statoil over an eight-year period, with the first unit, Songa Equinox, delivered in mid-June. It will start its first assignment on the Troll Field on the Norwegian continental shelf.

The remaining three units are scheduled to be delivered from DSME in August, September and November, respectively.

“No details regarding the dispute have been included by DSME in the notices,” Songa Offshore said.