Arbitration – Jurisdiction – Claimant bringing arbitration proceedings under arbitration clause in agreement for management of oil rig – Defendant asserting transaction set-offs and counterclaims for breaches of prior purchase contract for associated equipment - Whether defendant’s claims arose out of or related to management agreement

Stewart Boyd QC and Chirag Karia (Davies Johnson & Co) for the claimant; Timothy Young QC (Vinson & Elkins LLP) for the defendant.

Norscot Rig Management PVT Ltd v Essar Oilfields Services Ltd – QBD (Com Ct)(Burton J) – 12 February 2010

During 2006 the defendant approached the claimant for assistance in connection with the defendant’s bid for a drilling contract to be awarded by the Gujarat State Petroleum Corporation Limited (“GSPCL”) for drilling operations off the coast of India. Any rig to be employed under the proposed drilling contract was required to be equipped with a Subsea Blow Out Preventer Stack (“BOP Stack”) of 15,000 psi rating.