COSCO Corporation has been cleared from making additional payments to Dalian Deepwater Developer over a cancelled drillship order, says the shipbuilder.
On 4 September, COSCO Corporation said a London arbitral tribunal had ruled it is not liable to further claims over the USD500 million order, which was cancelled in August 2013.
The Singapore-listed shipbuilding arm of the China COSCO group said it has already refunded the first instalment and interest.
Dalian Deepwater Developer had sought arbitration after cancelling the contract it had signed in July 2010 for a DP3 deepwater drillship with a hull size of 291 m by 50 m.
The vessel was to be designed to store 1 million barrels of crude, giving it the highest storage capacity of any drillship.
Dalian Deepwater Developer terminated the contract citing late delivery for the ship, which was supposed to be delivered in the third quarter of 2012.
This post was sourced from IHS Maritime 360: View the original article here.