BW Offshore gets overdue dayrates for FPSO hire

BW Offshore’s subsidiary, Sendje Berge Limited, has informed that all outstanding dayrates in respect of the hire of the FPSO Sendje Berge have now been paid by Sinopec’s subsidiary, Addax. 

The payment was made in accordance with the arbitration award from February 2017, where the tribunal declared Addax to pay all outstanding dayrates and to make no deduction from future hire payments.

To remind, BW Offshore in February announced a successful arbitration award regarding its dispute with Addax about unpaid dayrates for the hire of the FPSO Sendje Berge that totaled $66.7 million.

Prior to the arbitration award, BW Offshore received payment of approximately $18.7 million from Addax as partial payment of the outstanding hire payable.

The FPSO has been operating for Addax on the Okwori field offshore Nigeria since March 2005 under the contract which was supposed to expire in 2018 or 2020 with extension options.

However, after losing the dispute, Addax in May terminated the FPSO contract with BW Offshore with effect from November 6, 2017.

Offshore Energy Today Staff