Daewoo Shipbuilding & Marine Engineering says Inpex's 1.2 trillion won claim for project delays is "unreasonable"

[Asia Economy Reporter Oh Ju-yeon] Daewoo Shipbuilding & Marine Engineering announced on the 5th that a claim regarding delays in the floating production storage and offloading (FPSO) process and incomplete construction was filed by Inpex, and an arbitration request has been submitted to the International Chamber of Commerce (ICC). The claimed amount reaches approximately 1.2 trillion KRW.

Daewoo Shipbuilding & Marine Engineering stated, "In 2012, we received an order from Inpex for one FPSO offshore production facility. We completed departure from the Okpo Shipyard in 2017 and finished the commissioning preparation work (Ready for Commissioning) for starting oil production offshore Australia by 2019. However, Inpex is claiming damages against us, alleging delays and defects in the commissioning preparation work."

They added, "We consider the claimed damages and grounds by Inpex to be unreasonable. We have comprehensively assessed the risks related to the Inpex project and have already accounted for the expected loss amount in our financial statements. We plan to actively respond to the arbitration process to minimize the financial impact caused by Inpex's arbitration request and to recover the remaining contract payments."