Ensco Rowan plc (NYSE: ESV) (EnscoRowan) announced on Thursday (May16) that an arbitration tribunal has awarded the Company $180 million in damages in its proceedings against Samsung Heavy Industries, a shipyard in South Korea (SHI). Further, the Company will be claiming interest on this amount and costs incurred in connection with this matter.

EnscoRowan Awarded $180 Million by Arbitration Tribunal
Caption: Drilling ship Ensco DS-5 - Image courtesy of Celso Hdez

In April 2016, the Company initiated arbitration proceedings in London against SHI for the losses incurred in connection with a drilling services agreement for ENSCO DS-5 that was voided by a customer.

In January 2018, the arbitration tribunal issued an award on liability fully in EnscoRowan’s favor, and the arbitral hearing on damages took place in the first quarter of 2019. SHI may apply to the English High Court for leave to appeal this award within 28 days from date of award. There can be no assurance when the Company will be paid all or any portion of the damages awarded or any related interest or costs.

Ensco Rowan plc (NYSE: ESV) is the industry leader in offshore drilling services across all water depths and geographies. Operating a high-quality rig fleet of ultra-deepwater drillships, versatile semisubmersibles and modern shallow-water jackups, EnscoRowan has experience operating in nearly every major offshore basin. With an unwavering commitment to safety and operational excellence, and a focus on technology and innovation, EnscoRowan was rated first in total customer satisfaction in the latest independent survey by EnergyPoint Research - the ninth consecutive year that the Company has earned this distinction.

Source: Ensco Rowan