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Held hostage or hi-jacked?
Legal dispute for the return of a rig
By: Karen Remo-Listana

Posted: 21 August 2006
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Grup Servicii Petroliere (GSP) denied accusations that it hi-jacked its own rig from Iran, saying it has the rights to move the rig to Sharjah in United Arab Emirates.

State-owned Petroiran Development Company (PDC) recently urged the UAE to help return an offshore drilling rig, which it says was hijacked by GSP. Mostafa Khoei, managing director of PDC said the GSP-owned Fortuna rig is still under rental contract to Iran's Oriental Oil Kish when it was "illegally" and "clandestinely" taken out of the Iranian waters.

But according to GSP, it was PDC who violated international norms by "holding hostage" one of its rigs despite court orders to the contrary.

"Two of our rigs - Fortuna and Orizont - were held hostage in the Iranian waters despite the termination of contract four months ago," Gabriel Comanescu, President of GSP told Pipeline Magazine. Comanescu said his company filed the case against Petroiran in a government court in Tehran.

He added: "This is a complete violation of human rights as the rigs and its crew was moored in the Iranian waters even after the termination of contract."

"As a gesture of goodwill GSP allowed the rigs to continue its work schedule for three months since the date of termination of contract on April 1, 2006 in order to secure the well."

Comanescu said they have arranged the clearance for the boats to take out Fortuna, based on a court decree from Queshm and an implementation order from Hengam Island security forces.

The other rig, although already cleared three months ago from Kish Court is still held hostage by PDC, Comanescu added. "How can it take three months to implement safety procedures, which have not even started? We even offered that we will do the necessary safety procedures in line with international norms."

He said the rigs were hired by Dubai-based Oriental Oil Co and without the consent of GSP further rented to PDC. GSP had terminated the contract with the company on account of breach of contractual conditions namely failure to open an acceptable L/C as security and non-payment of invoices for several months currently exceeding $8 million.

Denying the allegations made by PDC in the media recently, Comanescu said GSP has full right to take out the rigs post termination of its contract with Oriental Oil Co. Moreover, GSP later discovered that the Dubai-based company had never existed and it was never registered with the Dubai Chamber of Commerce and Industry, he said.

"PDC's illegal actions are clearly blatant violation of all international norms, conventions and practices. We have all intentions to take on these violations in competent court of law and pursue justice," said Comanescu.

He said GSP is willing to cooperate with NIOC for a future contract but only through a direct contract without an imposed broker, adding that PEDCO’s delay on the issue was akin to pirate acts which will bring down the reputation of NIOC.

"We hope that Iranian authorities will take immediate action for the illegal obstruction of the rig Orizont and the safety of our Romanian crew on board," Comanescu added.

"With such behaviour, it is no wonder that nobody is participating in the tenders organised by NIOC in Iran. PDC management is mistaken if they assume such pressure will force me to sign a new contract with their nominated broker."

OilExec International Ltd

 

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