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Norwegian offshore shipowner Havila Shipping has settled a dispute with submarine service provider DeepOcean.

The dispute, now settled, erupted after Havila said in December that he had terminated the contract with DeepOcean for the vessel Havila Phoenix, citing the latter’s breach of contractual obligations and demanding payment.

the the submarine vessel Havila Phoenix has been serving DeepOcean since 2013, under a charter with a firm period until May 2023. The agreement included further extension options beyond May 2023.

However, Havila in December 2020 said that DeepOcean had sent a letter to the company in mid-November regarding DeepOcean’s intention to seek protection under UK law for the liquidation of the UK-based business, including the company that chartered Havila Phoenix.



“After finalizing the project in which Havila Phoenix was engaged upon receipt of the mentioned letter, Havila Shipping ASA has not received any instructions regarding the further use of the vessel,” Havila said at the time.

“DeepOcean has, through its activities, or lack of activities, found itself in breach of its contractual obligations, including default of payment,” Havila said in December, adding that it had, in accordingly, terminated the charterparty and demanded payment. .

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In a statement on Wednesday announcing the settlement agreement, Havila said: “An agreement between the Havila Shipping companies and the DeepOcean companies on the full and final settlement between the parties has been signed.

“The settlement agreement includes both a cash settlement and the acquisition of ownership of A-frame, Trencher and ROVs previously owned by DeepOcean. The settlement was completed today.”

Havila did not share details about the cash amount involved in the settlement.