SEOUL, May 16 (Yonhap) -- Samsung Heavy Industries Co., a major shipbuilder in South Korea, said Thursday that it has been ordered by a London arbitration court to pay US$180 million in compensation to Ensco Global IV Ltd., a subsidiary of U.K.-based offshore drilling company Ensco.
Ensco initiated arbitration proceedings against Samsung Heavy in 2016 after its charter deal with Brazilian oil firm Petrobras International Braspetro B.V. was cancelled over corruption charges, claiming that the South Korean shipbuilder is responsible in part for the contract cancellation.
Samsung Heavy delivered one DS-5 drill ship to Pride International Inc., the U.S. offshore drilling company later acquired by Ensco, in 2011. In the same year, Pride signed a five-year charter deal on the vessel with Petrobras.
Petrobras cancelled its contract with Ensco in 2016, claiming that some of the commission paid by Samsung Heavy was improperly used and Pride was aware of the wrongdoing. Ensco then took legal steps against Samsung Heavy and Petrobras for its losses.
Samsung Heavy said it will appeal the arbitration court's decision and take the case to London's high court.
S. Korea braces for possible spread of ASF
Employment conundrum looms large in S. Korea with aging population
Under heir apparent leadership, Hyundai on road to become future mobility solutions provider
While Samsung innovates smartphones, Apple upgrades
(News Focus) Hyundai Motor on way to better performance after no-strike wage deal