Bumi Armada files $283.5M claim against Woodside
Malaysia’s FPSO player Bumi Armada has filed a claim against Australian energy company Woodside in relation to the contract for the Armada Claire FPSO seeking $283.5 million.
The floating production storage and offloading unit Armada Claire was operating for Woodside on the Balnaves field, offshore Australia, since 2014.
Bumi Armada’s subsidiary, Armada Balnaves, has filed and served a statement of claim in the Supreme Court of Western Australia on April 20, 2016.
In the writ of summons filed by Armada Balnaves on March 14, 2016, Armada Balnaves had sought from Woodside, among others, an unquantified amount of damages for Woodside’s repudiation of the contract, by its termination of the contract when it issued a notice of termination to Armada Balnaves on March 4, 2016.
The parent company said on Thursday that, under the statement of claim, Armada Balnaves has made a claim for damages in general for such repudiation, and the amount of such damages has now been quantified by Armada Balnaves to include the sum of $275.8 million (being the amount of the termination payment to which Armada Balnaves is entitled had the contract been terminated without breach) plus any additional damages for loss of bargain caused to Armada Balnaves as a consequence of Woodside’s repudiation of the contract.
An additional sum of $7.7 million was sought for work done and materials supplied pursuant to the contract, the FPSO player said.
The company added: “Bumi Armada is of the view that there are reasonable grounds to expect a favourable outcome in respect of Armada Balnaves’ primary claim against Woodside on the repudiation of the contract. Notwithstanding the foregoing, the award of damages in the event of a favourable outcome is subject to final determination by the court.”