Following an announcement of a “successful” arbitration award on Tuesday regarding unpaid FPSO dayrates, the Norwegian FPSO provider, BW Offshore, has reported that the award was entirely in its favor.
According to the company’s Oslo Stock Exchange filing on Wednesday, the company Sendje Berge Limited (SBL), a subsidiary of BW Offshore Limited, has received an arbitration award relating to its claim against Sinopec’s subsidiary Addax Petroleum Exploration (Nigeria) for the payment of all outstanding dayrates in respect of the hire of SBL’s FPSO Sendje Berge, currently operating in Nigeria.
The award is requiring the claimed dayrates to be paid. The arbitration tribunal has further declared that no deduction may be made by Addax from future hire payments.
BW Offshore added the company has prior to the award received payment of approximately $18.7 million from Addax as partial payment of the outstanding hire payable.
In its fourth quarter 2016 report published on Tuesday, BW said that the unpaid dayrates amounted to $66.7 million.
The Sendje Berge FPSO has been operating for Addax offshore Nigeria since March 2005 and is currently under a contract which expires in 2018 or 2020 with extension options.