West Libra Inc., the 100% owned subsidiary of Northern Drilling Ltd (“NODL”), has notified Daewoo Shipbuilding & Marine Engineering Co. Ltd (“DSME”) that it has cancelled the resale contract for the 7th generation ultra-deepwater drillship West Libra due to delay of delivery as well as repudiatory breach of contract.
West Libra Inc. has made advance payments totaling approximately USD $90 million under the resale contract with DSME, and will claim a refund of the instalment paid, plus interest and damages. If this claim is disputed, the Company will seek an award via London arbitration in accordance with the terms of the contract as well as industry standard procedures and timescales.
Following the cancellation of the resale contract of West Aquila in August 2021, DSME has initiated arbitration proceedings.
