Norwegian offshore vessel owner Havila Shipping has settled a dispute with subsea services provider DeepOcean.
The dispute, now settled, came to light after Havila in December said it had terminated the contract with DeepOcean for the Havila Phoenix vessel, citing the latter's breach of contract obligations, and seeking payment.
The subsea vessel Havila Phoenix has since 2013 served DeepOcean, under a charter with a firm period until May 2023. The deal included further extension options beyond May 2023.
However, Havila in December 2020, said that DeepOcean had in mid-November sent a letter to the company regarding DeepOcean's intention to seek protection under British law for wind up of the UK based activities, including the company that has chartered Havila Phoenix.
"After having finalized the project Havila Phoenix was engaged in at receipt of the letter mentioned, Havila Shipping ASA has received no instructions regarding further use of the vessel," Havila said at the time.
"DeepOcean has, as a result of their activities, or lack of activities, ended up in breach of contractual obligations, including payment default," Havila said in December, adding that it had, as a consequence, terminated the charter party and requested payment.
In a statement on Wednesday, announcing the settlement agreement, Havila said: "An agreement between companies in Havila Shipping and companies in DeepOcean about full and final settlement between the parties has been signed.
"The settlement agreement includes both cash settlement and the acquisition of ownership to A-frame, Trencher, and ROVs previously owned by DeepOcean. Settlement has been executed today."
Havila did not share details on the amount of cash involved in the settlement.