Songa won’t pay Daewoo cost overruns

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Daewoo Shipbuilding and Marine Engineering (DSME) delivered notices of arbitration regarding the construction contracts for Cat D-rigs to be delivered to Songa Offshore, according to Songa Offshore CEO, Bjørnar Iversen.

In its 1Q 2015 interim financial report, Songa Offshore reported that DSME experienced “significant delays and cost overruns” during the Cat-D project. No details regarding the dispute have been included by DSME in the arbitration notices.

Songa reports that, in its view, any attempt by DSME to recover such cost overruns “is of no merit” and Songa “will defend its position vigorously.”

One of the new rigs, the Songa Enabler CAT-D4, is a moored harsh environment semisubersible designed for efficient year around drilling, completion, testing and intervention operations. It is equipped for up to 500m water depth. The flexible design allows for future deepwater and arctic operations with  minor upgrades.

Delivery of the Enabler from DSME is scheduled for November 2015.

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