LONDON (Alliance News) - Providence Resources PLC on Wednesday said the litigation between the company and Transocean Drilling UK Ltd has ended after the latest decision was made by the Supreme Court of the UK.
Providence owns 80% of the Barryroe oilfield offshore Ireland alongside London-listed partner Lansdowne Oil & Gas PLC. In 2011 and 2012, a semi-submersible drilling unit named Arctic III was used on the field and rented from Transocean, and was the centre point of the dispute.
In December 2014, the Commercial Court in London ruled against Transocean in its claim for USD19.0 million in costs for using a semi-submersible drilling unit on Providence's Barryroe oilfield, while Providence had a counter claim that it shouldn't of had to pay that amount when the rig wasn't fully fit for purpose.
The Commercial Court ruled that Transocean wasn't due the amount it had claimed because it was in breach of contract for failing to maintain various parts of its sub-sea equipment.
The court also supported Providence's position that Providence was entitled to set off certain spread costs against Transocean's claim - however, that has now been denied.
On Wednesday, Providence said the Supreme Court has now "ordered that permission to appeal be refused as the appeal does not raise a point of law of general public importance".
"With this final legal matter now decided, litigation between the parties is ended. With this matter behind us, we will continue to develop our very significant portfolio of assets offshore Ireland, with a particular focus on the farm-out processes for Barryroe and Spanish Point as well as our preparations for the planned drilling of Druid in 2017," said Tony O'Reilly, chief executive of Providence.
Lansdowne released its own statement on Wednesday and Chief Executive Steve Boldy said it ws "disappointing" that Providence's appeal application had been denied.
"Whilst it is disappointing that the appeal to the Supreme Court is not proceeding, as this might have resulted in the Barryroe partners being reimbursed for some of the amounts already paid to Transocean, this finally brings to an end this long running litigation and there will be no further costs," he said.
Providence shares were down 3.6% to 10.0 pence per share on Wednesday while Lansdowne shares were down 2.3% to 1.05 pence.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Lansdowne Oil (LOGP)