Scorpion: Moves toward arbitration in Gazprom pay dispute.
Scorpion still in pay row with Gazprom
Bermuda-based driller Scorpion Offshore has issued an official notice of mediation of dispute to Russian monopoly Gazprom over disputed payment for use of the company’s Offshore Vigilant rig.
The Offshore Vigilant completed operations on the first well contract for Gazprom in mid-October with $33 million in undisputed invoices outstanding, Scorpion said in a release.
Gazprom committed to paying the invoices but never did, Scorpion said.
Negotiations between the two companies last week failed to resolve this matter, resulting in Scorpion issuing a notice of mediation pursuant to the contract with Gazprom.
If the outstanding invoices are not received in the 30 day mediation period, Scorpion will begin the formal arbitration process defined in the drilling contract.
Scorpion said it is confident that it will collect all outstanding amounts.