Chinese shipbuilder COSCO (Dalian) Shipyard, a subsidiary of COSCO Shipyard Group, should not pay any additional charges regarding the DP3 Deepwater Drillship construction contract, a London court has ruled in an arbitration proceeding.
The USD 500 million contract was concluded between COSCO Dalian and Dalian Deepwater Developer Ltd in July 2010, only to be cancelled in October 2013 due to delivery delays.
Following the termination, Dalian Deepwater requested for arbitration in London seeking refund of the first installment worth USD 110 million and other advances paid plus interest.
According to the court ruling of the arbitral tribunal, COSCO Dalian, having repaid to the shipowner the first installment together with interest thereon is not liable to the shipowner for any further liabilities, COSCO informed.
“The company will make announcements of any material development in relation to the DP3 Deepwater Drillship at the appropriate junctures,” the company added.