Sevan serves ONGC arbitration notice

Sevan Marine has sent a Notice of Arbitration to ONGC concerning a firm order both parties signed in June 2008 for the charter hire of an ultra-deepwater drilling platform rig.
The letter informs ONGC of Sevan’s intention to resolve certain disputes with ONGC relating to the firm order via arbitration. Sevan says it is disputing ONGC’s right to call on a bank guarantee for the sum of $15.9 million and/or to receive monies under this guarantee, on the grounds that ONGC has suffered no loss and/or that any loss suffered does not amount to the sum of the guarantee.
The company has filed a petition with Indian courts seeking to restrain ONGC from invoking the bank guarantee until the disputes have been settled by arbitration. This would prevent ONGC from invoking the bank guarantee until after the outcome of the petition and any further appeals.
Source: Press release