Slugfest continues as Marco Polo takes rig fiasco with SembMarine to mediation stage

More cracks had allegedly been found.

The contract cancellation dispute between MP Drilling and Sembcorp Marine is getting uglier by the day, as the former once again hits back at the latter, taking the dispute to mediation.

According to a statement by Marco Polo detailing various testing measures undergone by the rig, 70 and 180 new cracks were discovered on two separate testing occasions, with a majority of the cracks being found on or near the weld joints on both the internal and external surfaces of the spud cans.

The statement also addressed SembMarine’s latest answer, alleging that PPL has elected to affirm the contract and that the contract is still subsisting to be inconsistent with the first announcement it made earlier.

“MP Drilling views the purported election by PPL to affirm the Contract invalid and an afterthought to pursue payment of the 2nd disbursement of the contract price from MP Drilling when there is no such payment due or payable to PPL following the termination of the Contract on 17 November 2015,” the statement said.

Marco Polo also announced that it has advanced its process to the second stage, which is mediation.

“Should PPL refuse to mediate, MP Drilling will proceed to commence arbitration against PPL. The Company has likewise initiated the dispute resolution process against PPL in view of the latter’s refusal to confirm that it would not pursue, what the Company regards as an unwarranted demand, for payment of the 2nd disbursement of the contract price,” the statement said.