Shipyard Contract Expert Establishes New Division to Address Offshore Drilling Rig Construction Contract Cancellations

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Cary A. Moomjian, Jr., President of CAM OilServ Advisors LLC, announces establishment of a new division to provide expert witness services regarding offshore rig shipyard contracts.

Cary A. Moomjian, Jr., President of consultancy and expert witness services provider CAM OilServ Advisors LLC, announces creation of a new division to provide expert witness services in disputes relating to offshore rig shipyard construction contract cancellations. The new division will supplement the firm's longstanding drilling contract consultancy and expert witness services. The firm does not provide legal services.

Having served as VP, Manager of Contracts and General Counsel for two major international offshore drilling companies for over three decades, Mr. Moomjian has been involved in all phases of offshore drilling rig shipyard construction contracts including disputes arising prior to, upon or following rig delivery.

Each situation is unique, Mr. Moomjian noted. He observed that the offshore rig shipyard construction contract cancellations may or may not be contractually justified.

"Offshore drillers are in a survival mode and are unable to secure drilling contracts for many of the rigs they ordered" Mr. Moomjian commented, adding "many drilling contractors have entered into agreements with shipyards to extend rig delivery for several months or years. Now, some drillers are declaring shipyards in breach of contract.” He noted that over 25 offshore rig shipyard contracts already have been delayed or terminated. Most of the terminated contracts addressed construction of deepwater rigs.

Mr. Moomjian believes resolution of shipyard contract disputes will be protracted and complex. He noted that shipyard contracts contain a myriad of provisions that are likely to come under scrutiny, including permitted delay terms and provisions addressing matters such as change orders, new regulatory requirements, builder and owner obligations, and compliance with specifications. He also noted that offshore drilling rigs are extremely complex vessels that rarely are delivered without a "punch list" of deficiencies to be rectified post-delivery.

Inasmuch as the ultimate resolution of the disputes will likely depend on whether the cancellations were justified pursuant to the contract terms or were implemented by drillers to avoid the consequences of an ill-timed rig building decision, expert witnesses will be required to assist courts and arbitrators in making appropriate rulings.

Having been involved in shipyard rig construction contract negotiation, administration, rig delivery and dispute resolution since 1976, Mr. Moomjian has established the new division of CAM OilServ Advisors LLC to provide expert witness services in disputes regarding offshore rig shipyard construction contract cancellations.

For more information, visit the CAM OilServ Advisors LLC website or contact Mr. Moomjian directly by telephone (469 8880180) or email (cary(at)camoilserv(dot)com).

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cary moomjian
CAM OilServ Advisors LLC
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