Boskalis Serves MMHE with Arbitration Notice,

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Dutch offshore companies contractor Boskalis has served the Malaysian offshore building agency Malaysia Marine Heavy Engineering (MMHE) with an arbitration discover over alleged value overruns associated to the Bokor platform mission, in Malaysia.

Info on Boskalis’ web site from July 2018 reveals that the Dutch firm had secured a letter of award from MMHE for the transportation and float-over set up of a topside for the Bokor Central Processing Platform Phase 3 redevelopment mission in Malaysia. 

“The topside will be constructed by their yard in Malaysia and will be skidded onto an open-stern heavy transport vessel. For the purpose of this project, an existing vessel will be modified and become dynamic positioning (DP2) compliant allowing it to work in close proximity to offshore structures. The project is due to be executed in 2020,” Boskalis stated on the time. 

MMHE constructed the topside for Petronas Bokor Phase 3 Re-development mission, positioned off Sarawak, Malaysia.

According to MMHE’s assertion launched this week, Boskalis served it with the arbitration discover on March 14, 2021, in relation to claims arising from a subcontract between Boskalis and MMHE for the transportation and set up works for topside float over for the Bokor mission.

Describing the dispute, MMHE stated that underneath the contract,  Boskalis was required to make accessible a vessel for the load out of the topside based mostly on an agreed schedule.

In the discover of arbitration, as shared by MMHE, Boskalis claims that there was a delay within the loadout train onto the vessel and that Boskalis had allegedly incurred demurrage and standby prices between April 21, 2020, and July 20, 2020, on account of the delay.  

For this, per MMHE, Boskalis is searching for from MMHE “the alleged costs in the amount of USD11,954,475.00, together with interest and costs.”

“MMHE disputes the claims and maintains that MMHE has fully observed the provisions of the subcontract at all times.  [Boskalis’] claims are not consistent with the subcontract and/or in law. Further, the events and circumstances during the claim period were fully known to [Boskalis] and there was no delay on MMHE’s part during the said period that will entitle [Boskalis] to any compensation,” MMHE stated.

Boskalis didn’t instantly reply to Offshore Engineer’s request for remark. 

COVID-19 delays

According to data accessible on Boskalis’ web site, the corporate in August 2020 used its Forte heavy elevate and transportation vessel to conduct the float-over set up of the 11,238-ton Bokor CPP-A topside in Malaysian waters.

In its 2020 annual report, Boskalis shared the small print of how the mission was carried out, with out mentioning the dispute with MMHE, however it did point out delays. 

While it deemed the mission a hit it did share that there have been some challenges and stated that the COVID-19 pandemic had a big impact on the mission, because the closure of the borders additionally meant that way more permits than normal had been wanted to enter Malaysia.

“Team members had to go into quarantine on board for two weeks before the operation started. Afterwards, everyone had to be isolated in Malaysia for another two weeks before being allowed to travel home. The strict regulations and the lack of clarity about the timing of the operation made the work particularly demanding,” Boskalis revealed in its 2020 annual report. [The report also includes photos of the project.]

“We had planned to start in April but everything was delayed for about four months,” said Ronald Goetheer, operations director Heavy Marine Transport, as cited in the annual report. “Given the imminent monsoon season, we knew the float-over had to take place no later than August. A demanding operation like this can only be executed when wind speeds are low and wave heights are minimal,” Goetheer stated within the report.

According to the data within the Annual Report, the CPP-A topside manufacturing platform was constructed at a yard in Pasir Gudang, Malaysia, simply north of the Singapore border, and the load-out – taking the topside on board in a skidding operation – befell in July. 

After sea fastening the cargo, the Forte then began its two-and-a-half day journey to the Bokor subject offshore Borneo, the place it then put in the topside in a gap between two jackets measuring 43 meters and 18 centimeters and it needed to be exact because the hole meant there have been lower than ten centimeters of area on both aspect of the vessel.

Boskalis additionally described the ultimate set up course of in its report: “At the offshore site, the Forte was ballasted so that the topside was raised about one meter above the jacket. Using the information from the survey systems, the vessel then slowly reversed until cameras at the four corners showed that exactly the correct position had been reached. Subsequently, the ballast system was used to manipulate the draft exactly and the topside was positioned on the corners of the jackets.” 

Boskalis in December 2020 shared a video of the entire operation on social media, too. Watch the video under.