Arbitration Tribunal News

An arbitration tribunal has delivered a verdict in a drillship order cancellation case involving offshore drilling contractor Northern Drilling and Daweoo Shipbuilding Marine and Engineering (now known as Hanwha Ocean), ruling in favor of Hanwha.Billionaire John Fredriksen-owned offshore drilling company Northern Drilling canceled the West Aquila and West Libra drillship orders with South Korea's Daewoo Shipbuilding & Marine Engineering in 2021, citing delay of deliveries as well as a repudiatory breach of contract, and said it would seek a refund for installments paid.

ADS Maritime Holding said Wednesday it had acquired a 10% stake in a Dive Support Vessel and will act as Commercial Manager with primary responsibility for following up the shipowning company’s activities related to the vessel and the bareboat contract.The vessel “Southern Star” is a high spec DP3 Dive Support Vessel (“DSV”) built in 2017, suited for light subsea construction work (150t subsea crane) and advanced dive support work with accommodation for approximately 120 pax.

Philippine President Rodrigo Duterte barred his cabinet from talking about the South China Sea in public on Monday after weeks of strong rebukes by his ministers against China’s conduct in the contested waters.Tensions between the Philippines and its giant neighbor have escalated since March, with Manila filing daily diplomatic protests over the presence of hundreds of Chinese fishing vessels in disputed portions of the South China Sea.“This is my order now to the cabinet, and to all and sundry talking for the government…

The Philippine foreign minister on Monday demanded in an expletive-laced message on Twitter that China’s vessels get out of disputed waters, marking the latest exchange in a war of words with Beijing over its activities in the South China Sea.The comments by Teodoro Locsin, known for making blunt remarks at times, follow Manila's protests for what it calls the "illegal" presence of hundreds of Chinese boats inside the Philippines 200-mile Exclusive Economic Zone (EEZ)."China, my friend, how politely can I put it?

South Korean shipbuilding giant Samsung Heavy Industries must pay $411 million to offshore drilling contractor Stena Drilling, a London arbitration tribunal has ruled.The spat between the two companies began after Stena Drilling in 2017 terminated the order for the construction of the harsh environment semi-submersible drilling rig Stena Midmax.Stena Drilling had ordered the rig in June 2013, with the delivery expected in March 2016. Citing excessive delay, Stena Drilling on June 1, 2017, terminated the rig order.

Deepwater drilling rig contractor Pacific Drilling has found more work for its Pacific Sharav drillship.The drilling company on Wednesday revealed that Murphy Oil had hired the drillship for work offshore Mexico. According to the fleet status report, Murphy has agreed to charter the unit for two firm wells and one optional well.The day rate for the 2014-built drillship has been set to $230,000, and the contract is expected to start in November and last until February 2021.Pacific Drilling on Wednesday said that its fourth-quarter 2019 contract drilling revenue was $33.1 million compared to $54.3 million in third-quarter 2019. The decrease…

Offshore drilling services provider EnscoRowan announced that an arbitration tribunal has awarded it $180 million in damages in its proceedings against South Korean shipbuilder Samsung Heavy Industries (SHI).Further, the company will be claiming interest on this amount and costs incurred in connection with the matter.In April 2016, EnscoRowan (then Ensco) initiated arbitration proceedings in London against SHI for the losses incurred in connection with a drilling services agreement for ENSCO DS-5 that was voided by customer Petrobras.In January 2018, the arbitration tribunal issued an award on liability fully in EnscoRowan’s favor, and…

The United Arab Emirates (UAE) condemned Djibouti’s cancellation of DP World’s contract to run the Doraleh Container Terminal, calling it an “arbitrary” flouting of a signed agreement, said a report in Bloomberg. Media reports yesterday said that Dubai has accused Djibouti of illegally seizing a port operated by one of its state-owned shipping companies and started legal action against the African government. “Djibouti government’s seizure of the Doraleh port is regrettable,’’ Minister of State for Foreign Affairs Anwar Gargash wrote on Twitter. According to a press statement from DP World, the Government of Djibouti illegally seized control of the Doraleh Container Terminal from a Dubai Ports World (DP World) owned entity that designed…

The head of the Panama Canal Authority said on Monday a Miami-based arbitration board rejected a demand by Spanish-led GUPC consortium for $192.8 million to cover cost overruns during the building of a third set of locks for the century-old waterway. GUPC or Grupo Unidos por el Canal includes Sacyr SA of Spain, Impregilo of Italy, Jan De Nul of Belgium and Constructura Urbana of Panama. The authority's chief executive, Jorge Quijano, announced the ruling in a post on his Facebook page. "We have been informed that we have won a major arbitration dealing with the expansion of the canal by the GUPC contractor for $192.8 million," Quijano wrote in a post.

Philippine President Rodrigo Duterte said on Friday Chinese counterpart China Xi Jinping had warned him there would be war if Manila tried to enforce an arbitration ruling and drill for oil in a disputed part of the South China Sea. In remarks that could infuriate China, Duterte hit back at domestic critics who said he has gone soft on Beijing by refusing to push it to comply with an award last year by the Permanent Court of Arbitration in The Hague, which ruled largely in favor of the Philippines. Duterte said he discussed it with Xi when the two met in Beijing on Monday, and got a firm, but friendly warning. "We intend to drill oil there…

The Philippines may consider two-way talks with China to resolve a territorial dispute in the South China Sea but only if it wins its case with Beijing at an arbitration tribunal in The Hague, Manila's foreign minister said on Friday. China claims almost the entire South China Sea, believed to have huge deposits of oil and gas. Brunei, Malaysia, Vietnam, the Philippines and Taiwan also claim the waterways where about $5 trillion of ship-borne goods passes annually. China refuses to recognise the case lodged by the Philippines with the tribunal and says all disputes should be resolved through bilateral talks. Philippine Foreign Minister Albert del Rosario, who has resigned effective next month due to health reasons, said the court may hand down a ruling before May.

The U.S. Pacific Fleet Commander has warned of a possible arms race in the disputed South China Sea which could engulf the region, as nations become increasingly tempted to use military force to settle territorial spats instead of international law. Commander Admiral Scott Swift urged nations, like China, to seek arbitration to settle maritime disputes. "My concern is that after many decades of peace and prosperity, we may be seeing the leading edge of a return of "might makes it right" to the region," Swift said on Monday in a speech in Hawaii, according to a copy seen by Reuters. "Claimants and non-claimants alike are transferring larger shares of national wealth to develop more capable naval forces beyond what is needed merely for self defence," Swift said.

China has shown "great restraint" in the South China Sea by not seizing islands occupied by other countries even though it could have, a senior Chinese diplomat said on Tuesday ahead of two regional summits where the disputed waterway is likely to be a hot topic. Beijing has overlapping claims with Vietnam, the Philippines, Malaysia, Taiwan and Brunei in the South China Sea, through which $5 trillion in ship-borne trade passes every year. Reclamation work and the building of three airfields and other facilities on some of China's artificial islands in the Spratly archipelago have alarmed the region and raised concern in Washington that China is extending its military reach deep into maritime Southeast Asia.

Energy ministers from the Asia-Pacific Economic Cooperation (APEC) group will discuss climate change and business opportunities at a meeting in the Philippines next month but not the South China Sea. China claims most of the potentially energy-rich South China Sea, through which $5 trillion in ship-borne trade passes every year. The Philippines, Vietnam, Malaysia, Taiwan and Brunei also have overlapping claims. The Philippines has filed a case with an international arbitration tribunal over rival claims in the South China Sea but China has rejected the proceeding and says disputes must be handled bilaterally. China is a member of APEC.

An international maritime tribunal on Monday rejected Italy's request that India provisionally release two marines accused of killing two Indian fishermen, a setback for the Italian government after a three-year legal battle. However the International Tribunal for the Law of the Sea in Hamburg also ordered India to suspend legal action against the two Italian marines, saying an international arbitration hearing to be held in The Hague must rule on the dispute. Rome objects to holding a trial in India, arguing that the case should be taken to arbitration under the United Nations Convention on the Law of the Sea and that the incident happened in international waters where national laws do not apply. The Indian government wants Indian courts to try the case.

The Philippines aims to buy two frigates, two helicopters and three gunboats for deployment in the South China Sea where a territorial dispute with China has lent urgency to the need to bolster forces, a Philippine navy officer said on Wednesday. China claims nearly the entire South China Sea, rejecting claims to parts of it by the Philippines, Brunei, Malaysia, Vietnam and Taiwan. The confrontation between the Philippines and China has been particularly tense since June 2012 when China seized a rocky outcrop known as the Scarborough Shoal which is believed to be rich in oil and natural gas as well as fisheries resources. "The events in the West Philippine Sea actually gave some urgency on the acquisition…

China, involved in a growing dispute with its neighbours over the energy-rich South China Sea, wants to promote peaceful development of the oceans, Premier Li Keqiang said, warning conflicts in the past had only brought "disaster for humanity". China claims almost the entire ocean, rejecting rival claims to parts of it from Vietnam, the Philippines, Taiwan, Malaysia and Brunei in one of Asia's most intractable disputes and a possible flashpoint. It also has a long-running dispute with Japan in the East China Sea. "China will unswervingly follow the path of peaceful development and firmly oppose any act of hegemony in maritime affairs," Li said at a maritime summit in Greece on Friday in comments carried by China's Foreign Ministry website on Saturday.

China on Wednesday rejected an arbitration tribunal's ruling giving it six months to respond to a case filed by the Philippines over disputed waters, saying it has no plans to take part. China claims almost the entire South China Sea, rejecting rival claims to parts from Vietnam, the Philippines, Taiwan, Malaysia and Brunei in one of Asia's most intractable disputes and a possible flashpoint. It also has a separate maritime dispute with Japan over islands in the East Sea. The tribunal in The Hague gave Beijing until Dec. 15 to reply to the first international case filed against China related to the energy-rich waters. In giving China time to respond to the Philippines' filing…

Vietnam says will "resolutely defend its sovereignty." China says Vietnam making "irresponsible accusations" against it; Philippines submitted arbitration case against China in March. Vietnamese Prime Minister Nguyen Tan Dung said his government was considering various "defence options" against China, including legal action, following the deployment of a Chinese oil rig to waters in the South China Sea that Hanoi also claims. Dung's comments, given in a written response to questions from Reuters, were the first time he has suggested Vietnam would take legal measures, and drew an angry response from China, which insisted the rig was in its sovereign waters.

Algoma Central Corporation says it has received payments totalling $41.7 million from two Chinese banks on refund guarantees related to the cancellation of three ocean tanker shipbuilding contracts which occurred in 2010. In 2007, Algoma, through its wholly owned subsidiary, entered into contracts to build three 16,500 - deadweight ton product tankers in China. Each contract contained provisions that permitted cancellation under certain conditions. These conditions were met in…

Algoma Central Corporation announced earlier this week that it has received payments totaling $41.7 million from two Chinese banks on refund guarantees related to the cancellation of three ocean tanker shipbuilding contracts which occurred in 2010. In 2007, Algoma, through its wholly owned subsidiary, entered into contracts to build three 16,500 - deadweight ton product tankers in China. Each contract contained provisions that permitted cancellation under certain conditions. These conditions were met in 2010 and Algoma accordingly issued notices of rescission to the shipyard seeking to cancel the contracts and demanding reimbursement of the installments that had been advanced.

The Philippine navy will soon return to a South China Sea island it lost to Vietnam 40 years ago to drink beer and play volleyball with Vietnamese sailors, symbolizing how once-suspicious neighbors are cooperating in the face of China's assertiveness in disputed waters. Diplomats and experts describe the nascent partnership as part of a web of evolving relationships across Asia that are being driven by fear of China as well as doubts among some, especially in Japan, over the U.S. commitment to the region. When U.S. President Barack Obama visits Asia this month he will see signs that once-disparate nations are strategizing for the future, even though he will likely seek to shore-up faith in America's "pivot" back to the region.

Philippine navy will soon return to a South China Sea island it lost to Vietnam 40 years ago to drink beer and play volleyball with Vietnamese sailors, symbolising how once-suspicious neighbours are cooperating in the face of China's assertiveness in disputed waters. Diplomats and experts describe the nascent partnership as part of a web of evolving relationships across Asia that are being driven by fear of China as well as doubts among some, especially in Japan, over the U.S. commitment to the region. When U.S. President Barack Obama visits Asia this month he will see signs that once-disparate nations are strategising for the future, even though he will likely seek to shore-up faith in America's "pivot" back to the region.