Norway-based ocean bottom node survey firm Magseis Fairfield ASA, which has been in a mediation process with Fairfield Industries Inc. regarding certain contractual claims between the parties, said Friday that the mediation has been canceled and that the dispute would be solved by arbitration.
Magseis Farifrield firs informed of the mediation in January 2022. On October 30, 2018, Magseis ASA entered into a transaction agreement for the purchase of all the shares in Fairfield Industries International Limited and all membership interests in Fairfield Seismic Technologies LLC from Fairfield Industries Inc. The transaction was completed on December 18, 2018.
According to Magseis Fairfield, the first notification regarding a potential claim was sent by Magseis Fairfield to Fairfield Industries Inc. in March 2019. The mediation process related to a project in the Middle East that represented a major part of Fairfield Seismic Technologies’ project backlog at the time of the transaction, the company said, without sharing detail on the dispute itself.
In a statement on Friday, announcing the arbitration as the next step, Magseis Fairfield said: "Preparatory discussions between the parties, ahead of the final mediation meeting, have revealed that there is no common ground upon which to reach a mediated solution to the contractual claims between the parties.
"The final mediation hearing that was scheduled for March 2022 has been canceled and the dispute between the parties is thereby to be solved by arbitration in accordance with the parties' contract. Magseis Fairfield will provide further information about the arbitration process when relevant, including with respect to any material developments in such process. Magseis Fairfield’s claims relates to a project in the Middle East that represented a major part of Fairfield Seismic Technologies’ project backlog at the time of the transaction.