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Coastal Contracts subsidiary claiming $5.65m in arbitration case

Coastal Contracts subsidiary claiming $5.65m in arbitration case
A subsidiary of Malaysia’s Coastal Contracts is claiming $5.65m from China’s Yantai CIMC Raffles Offshore and Dynamic Driller over delays and technical non-conformities of a newly-built jack-up drilling rig.

Coastal Contracts’ Thaumas Marine has on 9 October filed a notice of arbitration with the Singapore International Arbitration Centre (SIAC) against the main builder CIMC Raffles Offshore and co-builder Dynamic Driller.

The shipbuilding contract was for a new JU2000E F&G design jack-up drilling rig for delivery no later than 30 June 2015.

The shipbuilders, however, delayed the delivery of the rig by 73 days until 11 September, making them liable to pay Thaumas Marine a sum of $3.65m.

Additionally, Thaumas Marine said that there exists “several critical and major non-conformities of the vessel’s parts and equipment which significantly deviated from the technical specifications as agreed.”

As a result, Thaumas Marine incurred damages amounting to $2m and it would also be claiming that amount from both CIMC Raffles Offshore and Dynamic Driller.

“Thaumas Marine has initiated arbitration proceedings against the builder and co-builder and will pursue its claims for their breaches of their obligations under the shipbuilding contract and recover the amounts due to it, while also seeking to resolve the dispute amicably,” Coastal Contracts stated.