Sevmash paid over $43 mln to Norwegian Odfjell upon court order

01.06.2011 JSC Sevmash Shipyard executed decision of Stockholm court and paid over $43 mln to Norwegian shipping company Odfjell (world leader in shipping of chemicals and oil products), reported press service of the Russian company.

"Sevmash has implemented resolution of Stockholm court in behalf of Norwegian shipping company. Following the court's decision, the shipyard paid $43 mln plus legal costs", said the Sevmash's press service having reminded that initially the Norwegian company demanded $303.860 mln.

Sevmash and Odfjell tied a contract in Nov 2004 for construction of 8 chemical tankers with an option for 12 ships. Lead ship was laid down in Dec 2005. Order amount was $500 mln, and then grew up to $544 mln. On Feb 21, 2008 Odfjell annulled the contract due to delay in execution.

The Russian shipyard repelled the accusation, stating that all shipbuilding commitments had been conscientiously fulfilled. According to the shipyard authorities, the contract provision about fixed price for the whole 12-vessel construction period were enforced by the orderer and had led to lack of financing. Talks on settling of equitable price were fruitless.