Belgian shipowner Exmar has revealed an initial ruling in its favour in a long-running legal battle with trader Gunvor over a floating storage and regasification barge charter.
The company said it had received an interim arbitration award in London rejecting Gunvor's claim on two preliminary issues.
The details have never been made public due to strict confidentiality clauses in the charter and the arbitration process. In a statement, Exmar described the arbitration as ongoing.
"Exmar can confirm that this decision has no negative impact on the Ebitda generated from this charter," the shipowner said.
Gunvor still has the possibility to appeal.
Deal agreed in 2018
The charter, signed in 2018, remains in place.
Gunvor began arbitration proceedings in 2019 in a row over the contract for the barge, Exmar's 25,000-cbm S188 (built 2017).
Brussels-listed Exmar had said before this that the refinancing of the FSRU under a sale and leaseback deal with China's CSSC had been signed, but not yet executed pending security documentation requiring the charterer’s signature.
Gunvor had a 10-year charter in place for the barge-based FSRU for use in Bangladesh, but had "raised some legal arguments that could lead to arbitration", the Belgian company had warned.
Bangladesh placed the deal in doubt in 2018, when it decided to focus on larger gas projects.
Exmar turned a profit for 2020 by accounting for the bulk of a cash settlement with Argentinian energy company YPF in another legal dispute over a charter.
The $149.1m settlement fee, which is payable in instalments, has been fully recognised in its 2020 figures.
The legal action came after YPF declared force majeure on Exmar’s Tango FLNG (built 2017).
