Addax Petroluem has terminated a contract with BW Offshore for an FPSO operating offshore Nigeria after losing a dispute related to payment of outstanding dayrates for the unit.
BW Offshore and Addax Petroleum, a subsidiary of Sinopec, had been in a dispute over unpaid dayrates for the FPSO Sendje Berge operating on the Okwori field offshore Nigeria since last year.
At the end of February 2017, Sendje Berge Limited (SBL), a subsidiary of BW Offshore, received an arbitration award relating to its claim against Addax for the payment of all outstanding dayrates in respect of the hire of FPSO Sendje Berge.
The award was in SBL’s favor and it required the claimed dayrates to be paid. The arbitration tribunal also declared that no deduction may be made by Addax from future hire payments.
Following the arbitration, BW Offshore informed last Friday that it had received termination notice for the FPSO Sendje Berge operating under a contract with Addax Petroleum Exploration Nigeria Limited.
BW Offshore said that the termination would have effect from November 6, 2017. Furthermore, Addax requested BW Offshore to provide a demobilization plan for the FPSO.
BW noted it would continue the process with the enforcement of the arbitration award for all outstanding claims against Addax. The outstanding gross claim at the end of the first quarter 2017 was $61.8 million.
The FPSO has been operating for Addax offshore Nigeria since March 2005 under a contract which was supposed to expire in 2018 or 2020 with extension options.
Offshore Energy Today Staff