Norway: Aker Solutions Announces Blind Faith Arbitration Ruling
The final ruling has been delivered in the proceedings between subsidiaries of Aker Solutions and Chevron concerning delivery of the Blind Faith platform. The platform was installed in the Gulf of Mexico and started production in 2008.
The ruling will result in a recordable loss of approx NOK 220 million for Aker Solutions in the second quarter 2011. The net cash effect is estimated at USD 10 million negative.
The financial effects described above will be divided between subsidiaries of Aker Solutions and Kvaerner, with 25 percent to Aker Solutions and 75 percent to Kvaerner.
The arbitration hearing took place in January and February 2011. A subsidiary of Kvaerner (upon consummation of the ongoing demerger from Aker Solutions) initiated arbitration proceedings regarding compensation for various changes to the work and associated acceleration work. Chevron U.S.A. Inc. presented various warranty claims and other claims against Aker Solutions.
Source:Aker Solutions , June 17, 2011; Image:Chevron