Transocean, Eni Owed Millions In Drill Ship Row, Court Hears - Law360

Transocean, Eni Owed Millions In Drill Ship Row, Court Hears

Law360, Houston (June 7, 2017, 8:53 PM EDT) -- Both Eni US Operating Co. and Transocean Deepwater Drilling Inc. told a federal judge in Houston during opening statements Wednesday in a contract dispute over a deep-water drilling rig ship that the other party was responsible for the breach and owes millions as a result.

The bench trial before U.S. District Judge Alfred Bennett began Wednesday in the suit brought by Eni in October 2014. Eni told the court Transocean agreed to provide it the drilling vessel, called Deepwater Pathfinder, in good working condition but failed to do so, as the Pathfinder had downtime that exceeded industry standards — around 23 percent compared to an average of 5 percent — and failed to resolve equipment issues when notified. The continued breaches, Eni wrote, necessitated the termination of its drilling contract.

Both companies filed proposed findings of fact and conclusions of law to the court on May 31. In Transocean's, it told the court Eni owes it $171.6 million in unpaid invoices related to the drilling contract. Eni told the court that the damage it suffered as a result of the "operational deficiencies" of Pathfinder — reached by finding the difference between the $650,000 per day rate it was paying and the value of what it received — is $78.2 million. Additionally, Transocean's breaches cost it $120.8 million in excess rig rate and associated costs, according to Eni's proposed findings.

...

For a reprint of this article, please contact reprints@law360.com.

Useful Tools & Links

Related Sections

Case Information

Case Title

ENI US Operating Co Inc. v. Transocean Offshore Deepwater Drilling Inc


Case Number

4:13-cv-03354

Court

Texas Southern

Nature of Suit

120(Contract: Marine)

Judge

Judge Alfred H Bennett

Date Filed

November 13, 2013

Law Firms

Companies

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!