UMW Oil & Gas suing Frontier for $19m for breach of Naga 7 contract

2015-04-16

Yet another indication of trouble brewing in the offshore industry is unravelling contracts, with local media reporting that Malaysia's UMW Oil & Gas (UMWOG) has taken legal action to seek compensation for alleged breach of contract by Philippines-based Frontier, that had contracted to deploy its Naga 7 rig but failed to execute it.

UMWOG is taking Frontier to court in relation to the deployment of Naga 7 and was seeking to claim all costs and damages related to it. Losses from the breach of contract but not limited to the early termination fee amounted to $19.2m, UMWOG said.

“Despite repeated reminders, Frontier has failed to, refused to and/or neglected to arrange for a said bank guarantee of $5m and an advance payment of $15m,” it added.

Source from : Seatrade Global

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