Providence can’t appeal to Transocean case ruling
- Exploration & Production
Irish oil and gas explorer Providence Resources has been denied a right to appeal to a court ruling in a case against offshore driller Transocean.
Providence was seeking permission to appeal the Court of Appeal decision brought on April 13, 2016, regarding a prior litigation between Providence and Transocean over the use of the semi-submersible drilling unit, Arctic III, on the Barryroe oilfield offshore Ireland in 2011/2012.
According to the company’s statement on Wednesday, by order dated November 2, 2016, the Supreme Court ordered that permission to appeal be refused “as the appeal does not raise a point of law of general public importance.”
Tony O’Reilly, Chief Executive of Providence Resources said: “With this final legal matter now decided, litigation between the parties is ended. With this matter behind us, we will continue to develop our very significant portfolio of assets offshore Ireland, with a particular focus on the farm-out processes for Barryroe and Spanish Point as well as our preparations for the planned drilling of Druid in 2017.“
The dispute began in 2012 when Transocean laid a claim for Providence to pay $19 million in outstanding dayrates for the use of Transocean Arctic III semi-submersible drilling rig.
Providence then issued a counterclaim in which it said the driller had been in breach of contract as it had not maintained the rig properly leading to drilling delays, and that Providence was entitled to set off certain spread costs against Transocean claims.
In December 2014, Hon. Justice Popplewell found that Transocean was indeed in breach of contract for failing to maintain various parts of its subsea equipment and that Transocean was not, therefore, entitled to the amount claimed against Providence. The ruling also supported Providence’s position that Providence was entitled to set off certain spread costs against Transocean’s claim.
Transocean then appealed the part of the 2014 judgment, related to whether Providence was entitled to set off certain spread costs against Transocean’s claim. On Wednesday, April 13, 2016, the court of appeals granted Transocean’s appeal on the set off point.
Offshore Energy Today Staff