BW Offshore’s arbitration saga with Brazilian firm ends in settlement

(offshore-energy.biz) Norwegian FPSO operator BW Offshore has reached a settlement with Brazil’s Prio Comercializadora, previously known as Petro Rio O&G Exploração e Produção de Petróleo, over a dispute concerning a floating production, storage, and offloading (FPSO) vessel.

As disclosed by the Norwegian player, the arbitration was agreed to be fully and finally settled before London’s International Court of Arbitration before the issuance of a final award. Prosafe Production is listed as BW Offshore’s co-respondent in the case.

While the terms of the confidential settlement agreement remain unknown, BW Offshore expects to receive approximately $36 million as a result.

According to the Norwegian firm’s annual reports, Petro Rio Exploração e Produção de Petróleo filed a request for arbitration concerning charter and services agreements in September 2021. The case was related to FPSO Polvo, for which PetroRio sought $31 million for the alleged overpayment of hire and arbitration costs and fees.

In October 2021, BW Offshore responded with a counterclaim, requesting compensation primarily for unpaid invoices and demobilization costs amounting to approximately $30 million. 

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