Scandinavian Oil-Gas Magazine
http://www.scandoil.com/moxie-bm2/news/spot_news/steel-price-cited-in-odfjell-sevmash-row.shtmlSteel price cited in Odfjell, Sevmash row
Russian Yard Sevmash has cited the skyrocketing costs of steel and the crisis of capital it caused for not having delivered the first of a dozen tankers ordered by Norwegian shipping group Odfjell.
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Russian Yard Sevmash has cited the skyrocketing costs of steel and the crisis of capital it caused for not having delivered the first of a dozen tankers ordered by Norwegian shipping group Odfjell.
The Norwegians have demanded compensation for the $500 million order they say they’ve scrapped. The Russians said they reject the demand after getting nowhere in negotiations to arrive at a fair price.
Sevmash said in a statement the ships will be built with the hope of breaking even on the sale.
The contract and its 2004, fixed-price implications look set to go to arbitration.
Sevmash, has completed 100 projects in 17 years, and says it is well underway with a second semi-submersible platform for Moss Mosvold Platforms AS.
