Settlement Reached in Arbitration Case Between BW Offshore and Prio Comercializadora

Floater specialist BW Offshore and Prio Comercializadora, formerly known as Petro Rio, have come to a resolution in an arbitration case that dates back to 2021.

The dispute originated in September 2021 when Prio, then operating under the name Petro Rio, initiated arbitration proceedings regarding the charter and services agreement for the FPSO Polvo with BW Offshore.

At the time, Prio alleged that it had overpaid the hire and sought $31 million in compensation, which included arbitration costs and fees.

BW Offshore responded in October 2021 by filing counterclaims for unpaid invoices and demobilisation costs totaling around $30 million. The company had anticipated a resolution to the case by the end of 2024 or early 2025.

In a recent filing with the Oslo Bors, BW Offshore announced that the arbitration dispute with Prio has been settled prior to the issuance of a final award.

Both parties have agreed to resolve the matter, which was brought before the London International Court of Arbitration, through a confidential settlement agreement. As part of the settlement, BW Offshore will receive approximately $36 million, covering the costs of the arbitration.