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DSME loses Songa Offshore arbitration

Daewoo Shipbuilding & Marine Engineering (DSME) has lost an arbitration it brought against Songa Offshore over costs overruns and additional work on the rigs Songa Equinox and Songa Endurance.

The South Korean yard had claimed $329m along with request for repayment of liquidated damages in a total amount of $43.8m for overruns and additional work which it alleged were due to errors and omissions in the FEED documents.

Songa Offshore said that a London-based arbitration ruled that under the contracts DSME had responsibility for the FEED package and the consequences of that with it ruling in favour of Songa Offshore.

“It is possible that DSME may seek permission to appeal the tribunal's award but if it is determinative of the claims and if no appeal is pursued then this will resolve DSME's claims leaving Songa Offshore to pursue its counterclaim against DSME in respect of the Rigs for the aggregate amount of $65.8,” the rig owner said.

“Songa Offshore will also evaluate the pursuit of its counterclaims in respect to the Songa Encourage and the Songa Enabler,” it added.

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