(1) BRASPETRO OIL SERVICES COMPANY (2) PETROLEO BRASILEIRO S.A. – PETROBRAS V (1) FPSO CONSTRUCTION INC. (2) FPSO ENGINEERING INC.

[2007] EWHC 1359 (Comm), QBD Comm, Mr Justice Cresswell, 12 June 2007

Contracts – Construction projects – –Energy – Reimbursement under Side Letter Agreements for contractor to pay third parties under construction projects – Interest on sums

The project concerned the conversion of a very large crude oil carrier (VLCC) into a floating oil storage and off-loading vessel (FSO) and the conversion of a semi-submersible oil production, storage and off-loading unit (FPSU). The claimants sought recovery of sums paid to third party suppliers of equipment, material and services for the purposes of the conversion works, which sums should have been paid by the defendants. The judgment turned on the facts.