Braspetro Oil Services Co & Anor v FPSO Construction Inc & Anor

Braspetro Oil Services Co & Anor v FPSO Construction Inc & Anor

Brasoil is entitled to recover from FCI all sums paid to third party suppliers and Jurong under Side Letter Agreements, the Jurong Settlement Agreement, and in restitution where payments were made at FCI’s request or for its benefit. The documentary and evidentiary requirements for recovery have been met. Interest is awarded at LIBOR + 2.5% simple, reflecting Brasoil’s cost of funds.

Parties
Claimant: Braspetro Oil Services Company; Claimant: Petroleo Brasileiro S.A. – Petrobras; Defendant: FPSO Construction Inc.; Defendant: FPSO Engineering Inc.; Defendant: FSO Construction Inc.; Defendant: FSO Engineering Inc.
Jurisdiction
England and Wales
Judgment Date
12 June 2007
Procedural Posture
Commercial Claim (debt Recovery) / Final Judgment After Full Trial
Outcome
Judgment for the claimants in full for admitted and established claims, with interest.
Legal Topics
Debt Recovery, Side Letter Agreements, Third Party Payments, Restitutionary Claims, Interest on Judgment Debts
Commercial Law Contract Law Restitution Debt Recovery Side Letter Agreements Third Party Payments Restitutionary Claims Interest on Judgment Debts

Case Brief

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Parties

Braspetro Oil Services Company

Claimant

Petroleo Brasileiro S.A. – Petrobras

Claimant

FPSO Construction Inc.

Defendant

FPSO Engineering Inc.

Defendant

FSO Construction Inc.

Defendant

FSO Engineering Inc.

Defendant

Procedural Posture

Commercial Claim (debt Recovery) / Final Judgment After Full Trial

Legal Issues

  1. 1 Whether Brasoil is entitled to recover sums paid to third party suppliers under Side Letter Agreements from FCI;
  2. 2 Whether Brasoil is entitled to recover payments made to Jurong under Side Letter Agreements and/or the Jurong Settlement Agreement;
  3. 3 Whether Brasoil is entitled to restitution for payments made without Side Letter Agreements;

Ratio Decidendi

Brasoil is entitled to recover from FCI all sums paid to third party suppliers and Jurong under Side Letter Agreements, the Jurong Settlement Agreement, and in restitution where payments were made at FCI’s request or for its benefit. The documentary and evidentiary requirements for recovery have been met. Interest is awarded at LIBOR + 2.5% simple, reflecting Brasoil’s cost of funds.

Court Disposition

Judgment for the claimants in full for admitted and established claims, with interest.

Orders

  • Defendants to pay Brasoil US$ 82,720,346.61 (P38) and US$ 171,192,386.04 (P40) as principal sums.
  • Defendants to pay interest of US$ 31,525,289.48 (P38) and US$ 65,734,021.50 (P40) at LIBOR + 2.5% simple.