LONDON--Irish oil and gas exploration and appraisal company
Providence Resources PLC (PZQA.DB) confirmed Monday that Transocean
Drilling U.K. has been found to be in breach of contract following
a court ruling on Friday.
In the published ruling from the Commercial Court in London,
Providence said Hon. Mr. Justice Popplewell found that Transocean
was in breach of contract for failing to maintain various parts of
its sub-sea equipment and that Transocean was not, therefore,
entitled to the amount it had claimed against Providence.
The ruling also supported Providence's position that Providence
was entitled to set off certain spread costs against Transocean's
claim, it said.
The case related to cost claims made by Transocean against
Providence regarding the use of the semi-submersible drilling unit,
the Arctic III, in 2011/12 on Providence's Barryroe oilfield,
offshore Ireland. The total claim made by Transocean in 2012
amounted to $19 million. Providence, in defense of its position,
counter claimed against Transocean.
Tony O'Reilly, chief executive of Providence, said: "Following
the handing down of this judgment, we will look to settle the final
account and will update the market when these details are
confirmed."
Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
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