Havila Shipping is considering its legal options after Shell returned a platform supply vessel (PSV) early from a charter.
A deal had been agreed for the 4,900-dwt Havila Crusader (built 2010) in January.
The vessel was chartered for an estimated period of a year to work on two firm wells, with options for seven more over an estimated term of two years.
"The parties have different views on the obligation of Shell UK in a charter party based on two wells," Havila said.
"The company will consider which steps to take towards Shell UK as a result of the early redelivery."
Havila views the dispute as important because it could set an unwelcome precedent in terms of oil companies being able to send ships back to owners whenever they decide to.
'No meaning' to contract
"Shell told us they have finalised two wells. We thought the contract meant working on wells from start to end. Shell agreed the stock exchange notice in January which said an estimated period of a year," chief financial officer Arne Johan Dale told TradeWinds.
"Shell might be involved in 10 wells, but if they can say one day they have finalised one well and then the next day say they have finalised another, it gives no meaning to the contract. There is no firm period. There will be no contracts for wells in the future."
Dale said the offshore market is difficult and Shell no longer needed the vessel.
"They take the position that they have the right to redeliver," he added.
The CFO said the company will continue its dialogue with Shell, but is considering arbitration in the case.
Lay-up list expanding
The Havila Crusader will now join the list of more than 40 offshore support vessels to be stacked in the North Sea market, as owners struggle with the oil price fall and coronavirus implications for demand and crew movements.
Havila said the ship will await "improved market conditions".
The company is still trying to complete a $402m refinancing with banks and bondholders to secure liquidity.
The deal involves a new convertible loan from the controlling Saevik family that will see it maintain control of the shipping company, plus a potential repair issue of shares.
Debt maturity and some repayments will be pushed out until at least 2025.
