Odfjell arbitration award

10-03-2011

In 2004 Odfjell placed an order at Sevmash, a large state-owned shipyard near Arkhangelsk, for up to 12 chemical tankers, each of about 45,000 dwt. Excessive and continuing delays during construction forced Odfjell in 2008 to cancel these contracts. Odfjell claimed for damages and was awarded USD 43 million plus interest by the Swedish Arbitration Tribunal on 30 December 2009.

The Russian shipyard failed to honour the international award, forcing Odfjell to seek enforcement within Russia. A ruling was made by the State Commercial Court in Arkhangelsk on 10 December 2010, in Odfjell's favour. However, Sevmash appealed the decision.

The Cassation Court in St. Petersburg today Thursday 10 March 2011 decided in favour of Odfjell, and confirmed the decision of the State Commercial Court allowing enforcement of the arbitral award, which now with interest is about USD 50 million. The decision was handed down orally in the court today, and Odfjell will receive the full written decision within a week from today.

The Odfjell Group is a leading participant in the global market of the seaborne transportation and storage of chemicals and other speciality bulk liquids. The Odfjell fleet comprises about 85 ships, trading both globally and regionally. The tank terminal division consists of 9 fully or partially owned tank terminals and 11 associated tank terminals strategic located at important shipping hubs around the world. The Odfjell Group is headquartered in Bergen, Norway and has more than 20 international offices. Odfjell has about 3 800 employees and an annual gross revenue of about USD 1.2 billion.

Odfjell