Aquadrill Offshore, formerly known as Seadrill Partners, has lost in arbitration against oil major BP related to claims for breach of an offshore drilling contract and is now considering an appeal.
Aquadrill reported on Tuesday that the International Arbitration Tribunal in the matter of various Aquadrill subsidiaries versus BP Exploration and Production had decided that Aquadrill’s claims for breach of contract and related requests for relief and damages were denied in full.
According to the arbitration agreement between the parties, the arbitration was conducted in New York City in accordance with the Commercial Arbitration Rules of the American Arbitration Association and the result is binding upon the parties, subject to a limited right to appeal.
Aquadrill is evaluating the tribunal’s ruling and considering its options, including its right to appeal.
Offshore Energy has reached out to Aquadrill and BP, seeking further details about the arbitration but the companies are yet to respond.
As reported last week, Seadrill Partners changed its name to Aquadrill Offshore following its recent exit from Chapter 11 . The update related to the name change came as the rig owner won a new contract from Equinor for operations in the U.S. Gulf of Mexico. The contract was awarded to the 2013-built Vela drillship.
Aquadrill, a limited liability company formed by Seadrill Limited to own, operate, and acquire offshore drilling rigs, owns 11 offshore drilling units, consisting of 4 ultra-deepwater drillships, 4 ultra-deepwater semi-submersibles, and 3 tender assist drilling units.
In related news, rival drillers are reportedly looking to buy the assets of its bankrupt competitor Seadrill Limited , controlled by the Norwegian billionaire John Fredriksen.