Transocean Drilling UK Ltd v Providence Resources Plc & Anor [2014] EWHC 4260 (Comm) (19 December 2014)

Transocean Drilling UK Ltd v Providence Resources Plc & Anor [2014] EWHC 4260 (Comm) (19 December 2014)

Transocean is not entitled to remuneration at the contract day rates for periods of delay caused by its own breach, absent clear express contractual language to that effect. The right of abatement is preserved, and Providence may set off wasted spread costs against Transocean's claim for remuneration. The contract's exclusion and indemnity clauses do not bar Providence's set-off or misrepresentation claims unless expressly stated.

Citation
[2014] EWHC 4260 (Comm)
Parties
Claimant: Transocean Drilling U.K. Limited; Defendant: Providence Resources PLC; Defendant: The Arctic III
Jurisdiction
England and Wales
Judgment Date
19 December 2014
Procedural Posture
Commercial Dispute / High Court Judgment
Outcome
Claim and counterclaim both succeed in part; Transocean entitled to remuneration for periods not caused by its breach, subject to set-off for Providence's wasted spread costs.
Legal Topics
Remuneration Under Drilling Contracts, Allocation of Risk, Exclusion Clauses, Right of Abatement, Set Off, Misrepresentation
Contract Law Commercial Law Oil and Gas Law Remuneration Under Drilling Contracts Allocation of Risk Exclusion Clauses Right of Abatement Set Off +1 more

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Parties

Transocean Drilling U.K. Limited

Claimant

Providence Resources PLC

Defendant

The Arctic III

Defendant

Procedural Posture

Commercial Dispute / High Court Judgment

Legal Issues

  1. 1 Whether Transocean is entitled to remuneration for periods of delay caused by its own breach under the contract
  2. 2 Whether Providence can set off its wasted spread costs against Transocean's remuneration claim
  3. 3 Proper construction of day rate provisions in the contract

Ratio Decidendi

Transocean is not entitled to remuneration at the contract day rates for periods of delay caused by its own breach, absent clear express contractual language to that effect. The right of abatement is preserved, and Providence may set off wasted spread costs against Transocean's claim for remuneration. The contract's exclusion and indemnity clauses do not bar Providence's set-off or misrepresentation claims unless expressly stated.

Court Disposition

Claim and counterclaim both succeed in part; Transocean entitled to remuneration for periods not caused by its breach, subject to set-off for Providence's wasted spread costs.

Orders

  • Transocean's claim for remuneration is reduced by periods of delay caused by its breach.
  • Providence is entitled to set off its wasted spread costs against Transocean's claim.