BW Offshore gets $36m in court case settlement

In a significant development, BW Offshore and Prio Comercializadora, formerly known as Petro Rio, have resolved an arbitration dispute that originated in 2021. This resolution comes as both companies sought clarity over contractual agreements related to the FPSO Polvo. The settlement, reached before a final award was issued, marks an important milestone in the ongoing legal matters between the two firms.

Details of the Dispute and Settlement

The arbitration case began in September 2021 when Prio, at the time operating as Petro Rio, initiated proceedings against BW Offshore. The Brazilian company alleged that it had overpaid for charter and services linked to the FPSO Polvo. Specifically, Prio sought $31 million in compensation, which included arbitration costs and additional fees.

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In response, BW Offshore filed counterclaims in October 2021, arguing that Prio owed approximately $30 million for unpaid invoices and demobilization costs. As recently as 2023, BW Offshore anticipated a resolution to the case by late 2024 or early 2025. However, the parties have since opted for a confidential settlement, concluding their disputes ahead of the anticipated judgment from the London International Court of Arbitration.

In a filing to Oslo Bors on Thursday, BW Offshore disclosed that they would receive around $36 million as part of the settlement. This amount includes arbitration costs, highlighting the financial implications of the legal proceedings for both companies. The agreement underscores the importance of resolving contractual disputes efficiently in the competitive offshore industry.