An arbitration panel has ruled that Halliburton Co. must pay Barracuda & Caratinga Leasing Co. $200 million. This came as a result of a claim Barracuda filed against KBR Inc., a former Halliburton subsidiary. Before KBR was spun off from the Houston oil services company in 2007, it had a contract with Barracuda & Caratinga for the development of the Barracuda and Caratinga oil fields off the coast of Brazil.
Barracuda & Caratinga later claimed that certain subsea bolts used in the project were defective. The arbitration panel recently ruled that KBR is liable for the cost of replacing the bolts. Halliburton says it’s “pursuing all possible avenues” to appeal the ruling. It appears that when Halliburton and KBR split, Halliburton agreed to pay all the costs and expenses, cash settlements or cash arbitration awards, related to the replacement of the bolts.
Source: Claims Journal
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