Hoegh LNG has announced that it has settled all disputes with the charterer of a floating storage and regasification unit.
The Oslo-based company said the parties had reached an amicable settlement to settle all of the disputes, claims and counterclaims.
The charter for the FSRU remains in full force and each party will cover its costs concerning the dispute, according to a statement.
Hoegh LNG’s third quarter 2023 report explained the dispute started in 2021 when the charterer of the PGN FSRU Lampung served a notice of arbitration to void the lease and maintenance agreement.
In June 2022, the charterer filed a statement of claim with a request for a primary relief and three alternative reliefs.
PT Hoegh LNG Lampung served a reply refuting the claims as baseless and without legal merit.
The charterer’s claim of restitution if the agreement was declared null and void was $416m, increased to $472m in September 2023 plus interest and costs.
Hoegh LNG said in the third-quarter report: “In the event the outcome of the dispute is unfavourable to PT Hoegh LNG Lampung, it could have a material adverse impact on the group’s business, financial condition, and results of operations.”
The company also made a counterclaim against the charterer for multiple breaches of the agreement and a claim against the parent company of the charterer for the fulfilment of the charterer’s obligations as stated in a guarantee provided by the parent company.
Both parties have continued to perform their respective obligations under the agreement during the arbitration process.