FLEX LNG revealed in a statement released on Monday that it has executed with Samsung Heavy Industries (SHI) a binding and final settlement agreement.
As a result, arbitration proceedings have been discontinued and all actual and potential claims and counterclaims arising out of past relationships and contracts between the parties have been settled, according to the statement.
As part and parcel of the settlement agreement, two ship building contracts have been entered into between SHI and FLEX LNG for two 174,000 m3 TFDE LNG Carriers at prices reflecting current market conditions.
As a result of the settlement agreement the parties have agreed to redeploy USD 210 million from payments already made to SHI by the FLEX LNG group, which will be used as the first instalment for the two vessels.
The remaining instalment will be due on delivery of the vessels. Deliveries are scheduled for Q1 2017.
The parties have in addition agreed to investigate the use of the ME-GI propulsion system for the LNG Carriers.
The two companies have also agreed to market for sale 6 complete offshore LNG loading arms.
SHI will be responsible for the marketing and sales process and the parties will share any proceeds remaining after storage and marketing costs have been deducted.
[mappress] LNG World News Staff, September 2, 2013; Image: FLEX LNG