CNOOC Services to receive compensation of 404 million, reaching settlement with Norwegian oil company

2014-04-25 09:00

China Oilfield Services announced late on the 16th that it had reached a settlement agreement with Statoil, the Norwegian state-owned oil company, regarding a standby fee dispute. Statoil will make a one-time payment of $65 million (approximately RMB 404 million) to resolve the dispute.
　　According to the announcement, COSL Offshore Management AS (“COM”), a Norwegian subsidiary of China Oilfield Services, and Statoil Petroleum As, a subsidiary of Statoil, had a dispute over standby fees for the COSL Innovator and COSL Promoter semi-submersible platforms due to the installation of third-party equipment. In 2013, COM filed a lawsuit with the Stavanger District Court in Norway, claiming a total of approximately RMB 924 million plus overdue interest from Statoil Petroleum As.
　　After accepting the case, the court conducted a defense procedure, and both parties conducted settlement negotiations according to the procedure determined by the court. Statoil Petroleum As recently agreed to pay COM $65 million (approximately RMB 404 million) in a one-time payment to resolve the previous dispute.
　　Although this is less than the company's previous claim of RMB 924 million, China Oilfield Services stated that, considering the ongoing business relationship between the two parties, and considering the time cost of pursuing litigation and the risk of an unknown final outcome, the company agreed to Statoil's settlement terms and will apply to the Stavanger District Court to withdraw the lawsuit. The settlement amount will be fully recognized as the company's current period income.
　　A relevant person in charge of China Oilfield Services stated that the company's three semi-submersible platforms currently providing drilling services for Statoil are all operating normally and have achieved excellent results in previous operations, gaining customer recognition.
　　Because China Oilfield Services has multiple overseas businesses and subsidiaries, the litigation risks faced by its overseas businesses are also one of the issues the company must address. In recent years, China Oilfield Services has been resolving these issues one by one through means such as settlement.
　　In August last year, China Oilfield Services announced that some tax disputes were involved in the acquisition of the Norwegian drilling company CDE. After settlement, CDE was required to pay approximately 173 million Norwegian Krone in income tax, equivalent to approximately RMB 181 million. Previously, some industry insiders worried that the risk of unexpected losses from Norwegian tax issues would affect China Oilfield Services' performance, but the tax amount reached in the settlement was within expectations. The RMB 404 million settlement obtained this time will also be included in the company's current period income.

Mawei Shipbuilding wins order for offshore engineering vessel from Sinopec

Another large Chinese drilling platform heads to the Xisha Islands waters

COOKIES

Our website uses cookies and similar technologies to personalize the advertising shown to you and to help you get the best experience on our website. For more information, see our Privacy & Cookie Policy

COOKIES

required

These cookies are necessary for basic functions such as payment. Standard cookies cannot be turned off and do not store any of your information.

analyze

These cookies collect information, such as how many people are using our site or which pages are popular, to help us improve the customer experience. Turning these cookies off will mean we can't collect information to improve your experience.

Feature

These cookies enable the website to provide enhanced functionality and personalization. They may be set by us or by third-party providers whose services we have added to our pages. If you do not allow these cookies, some or all of these services may not function properly.

advertise

These cookies help us understand what you are interested in so that we can show you relevant advertising on other websites. Turning these cookies off will mean we are unable to show you any personalized advertising.

WeChat Official Account

Video account

Douyin account

Business License