EnscoRowan, an offshore drilling company, announced it won $180 million in damages in arbitration proceedings against Samsung Heavy Industry stemming from a 2016 drillship case. Concerning the incident, in April 2016, the company, then known as Ensco, began arbitration proceeding against SHI for the losses incurred in connection with a drilling services agreement for ENSCO DS-5 that was voided Brazil’s Petrobras.
EnscoRowan commented on the case that
EnscoRowan today announced that an arbitration tribunal has awarded the Company $180 million in damages in its proceedings against Samsung Heavy Industries, a shipyard in South Korea. Further, the Company will be claiming interest on this amount and costs incurred in connection with this matter.
The abritral hearing on damages was conducted during the first quarter of 2019.
SHI may apply to the English High Court for leave to appeal this award within 28 days from date of the award. There can be no assurance when the Company will be paid all or any portion of the damages awarded or any related interest or costs
… EnscoRowan noted.
The incident commenced in 2016. when Petrobras called off its contract with Ensco for the drillship DS-5 over corruption charges.
Petrobras in January 2016 asserted that the Ensco DS-5 drilling services contract was void based on an allegation that Ensco’s subsidiary Pride had had knowledge of and assisted a former third-party marketing consultant that procured and received improper payments from Samsung Heavy Industries, the shipbuilder of Ensco DS-5 drillship, that were then paid to employees of Petrobras.
