Prosafe, an operator of semi-submersible accommodation vessels known as flotels, has won a court case against Westcon related to cost overruns for the conversion of the Safe Scandinavia unit.
According to Prosafe’s statement on Thursday, Stavanger City Court has made a favorable decision in the court case regarding the tender support vessel (TSV) Safe Scandinavia – Westcon dispute.
To remind, Westcon Yards and Prosafe Rigs entered into an EPC contract for the conversion of Safe Scandinavia into a tender support vessel on February 25, 2015. The rig arrived at the yard in March 2015 and the plan was for the work to be completed in the first half of 2015.
However, the project experienced delays thereby also delaying the contract start with the Norwegian oil company Statoil.
Prosafe claimed that the conversion of the vessel experienced a substantial cost overrun compared to the price estimate given by Westcon when the two entered into the contract. Following delays, the unit finally completed its acceptance testing and mobilized to the Oseberg Øst installation in the North Sea to start drilling support operations for Statoil in March 2016.
The dispute between Westcon Yards and Prosafe was related to a substantial cost overrun of Westcon’s price estimate for the conversion of the Safe Scandinavia to a tender support vessel at Westcon.
In mid-2016 Westcon claimed an additional compensation of approx. NOK 306 million ($39M) plus interest, whereas Prosafe disputed Westcon’s claim and claimed a substantial repayment.
The court gave judgement in favor of Prosafe, and has decided that Westcon must repay Prosafe NOK 344 million plus interest and NOK 10.6 million legal costs.
Jesper K. Andresen, CEO of Prosafe, commented: “We are very pleased to note that the Stavanger City Court has decided in our favor in practically all respects. The judgement represents full repayment of the amount claimed.”
Offshore Energy Today Staff