PGS faces arbitration on scrapped newbuild
Norwegian seismic player Petroleum-Geo Services (PGS) said today that it has received formal notification from Factorias Vulcano shipyard in Spain that arbitration processes against its cancellation of newbuild vessel 553 have been started.
PGS unit, Arrow Seismic Invest III, binned its contract for the unit last month, and is demanding a refund of €39 million ($55.6 million) plus interest from the shipyard.
“The shipbuilding contract is governed by Norwegian law,” said the company in a statement
“The parties will, according to the contract, meet for arbitration in Norway.”
“Arrow strongly believes that its termination is rightful, and will pursue its claim for refund of the installed amounts.”
Arrow will receive payments under the refund guarantees until the arbitration is resolved, the company added.
In March this year, Arrow cancelled a contract for newbuild vessel 532, also from Factorias Vulcano, on the grounds of late delivery.
Arrow is also going through Arbitration processes on the cancellation of this vessel
