Fugro to pay $26.8 million after losing in arbitration case with Tasik
The article has been updated with a statement from Tasik Subsea.
Dutch contractor Fugro has lost its arbitration with Singapore’s Tasik Toba Subsea related to an early termination of a six-year charter for the Southern Star vessel. As a result, Fugro has been ordered to pay $26.8 million to Tasik.
The vessel started its charter with Fugro in June 2017 and it was supposed to remain with the Dutch company for the following six years. However, Fugro in March 2019 decided to terminate the deal and returned the vessel to its owner.
According to Tasik, the vessel had been almost continuously employed by Fugro on some 11 projects in DP3 mode, in Australia, New Zealand and Malaysia during its charter.
Following the termination, Fugro has been involved in arbitration proceedings with Tasik regarding the handing back of the long-term chartered DP3 diving support vessel, the Southern Star, to Tasik.
According to Fugro, the arbitration tribunal delivered its decision in which it determined that the charter party should not have been terminated and thus Tasik was awarded a sum of $26.8 million.
Fugro added it still had a number of counterclaims against Tasik which had not yet been deliberated or decided by the arbitration tribunal and which would be addressed at a later point this year.
The Southern Star is equipped with a DP3 dynamic positioning system, 300msw Saturation diving system, and 150-tonne SWL active heave compensated subsea crane.
In a separate statement on Wednesday, John Giddens, Tasik CEO, described the award to his company of $26.8 million as a ‘victory for the little guy.’
Giddens said: “The press release from Fugro correctly stated that Tasik has been awarded $26.8 million but it failed to mention that we have significant deferred claims against the Dutch company’s Singapore-based subsidiary, which dwarf the counterclaims to which Fugro has referred. These claims are expected to be heard later this year and we’re demanding that Fugro issue balanced and accurate press releases (if any) in connection with our vessel in future.”
Offshore Energy Today Staff
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