Offshore Ireland focused exploration firm Providence Resources has confirmed that it has received a judgement in its favor in a ruling over costs Transocean was claiming against it.
The case related to cost claims made by Transocean against Providence regarding the use of the semisubmersbile drilling rig Arctic III in 2011/12 on Providence's Barryroe oilfield, offshore Ireland.
According to a statement by Providence this morning, the total claim made by Transocean in 2012 amounted to about US$19 million. Providence, in defense of its position, counter claimed against Transocean.
"In the published ruling, issued December 19, the Hon. Mr Justice Popplewell found that Transocean was in breach of contract for failing to maintain various parts of its subsea equipment and that Transocean were not, therefore, entitled to the amount claimed against Providence," said the Irish firm. The ruling also supported Providence's position that Providence were entitled to set off certain spread costs against Transocean's claim, Providence added.
Tony O'Reilly, Providence's CEO, said: "Whilst we never wanted to go to court in the first instance, this ruling clearly vindicates our decision to defend ourselves against Transocean's claim. The judgment confirmed our original position that we should not have to pay Transocean for those periods when the rig was not fit for purpose, due to breaches of contract arising from Transocean's failure to carry out maintenance on safety critical parts of its subsea equipment. We are also delighted that the Judge agreed with Providence that we should be allowed to set-off certain third party costs against Transocean's claim. In addition to finding Transocean in breach of contract, the ruling was critical of Transocean's conduct and testimony, which included the deliberate doctoring of reports and deception by Transocean's senior management.
"Following the handing down of this judgment, we will look to settle the final account and will update the market when these details are confirmed.
"Likewise, we hope to be in a position to update shareholders on our Barryroe farm out process. Finally, once details are confirmed by the operator, we will also update the market on the next well in our program (Spanish Point), scheduled to commence in 2015."
Subscribe
