without care for mounting costs and losses which are to be borne by the

Without care for mounting costs and losses which are

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without care for mounting costs and losses which are to be borne by the defaulting party; (c)There is no real dispute that the sums claimed by Shell were in fact accrued and paid out by it. In this respect I am satisfied that Shell was at pains to procure and negotiate reasonable contracts and rates; (d)There was however considerable increase in costs as a result of the weather 'downtime' and mobilisation and demobilisation costs incurred as a consequence of the weather during the monsoon. (e)Given the entirety of the circumstances I find that Shell did not act unreasonably in proceeding as it did in according priority to the Baram project. The timing of the repairs for the incident coincided with a prior obligation undertaken by Shell and to which it was committed. Therefore Shell was entitled to determine that the need to effect repairs was to be accorded less priority than its prior obligations. (f)Notwithstanding my finding above, it appears to this Court that it does not automatically follow that Shell is entitled to the entire amount claimed. Given the entirety of the circumstances it appears that a portion of the losses sustained more particularly pertaining to the costs of downtime and the additional mobilisation and demobilisation costs ought to be shared or absorbed by Shell. I come to this conclusion because having considered the issue of the time lapse between the incident and the commencement of repairs, as well as the decision to continue work during the monsoon, it appears to this Court that- (i)30% of the costs of mobilisation and demobilisation of RM2,966,220-00 and USD1,851,909.00; and
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(ii)30% of the weather downtime costs of RM1,479,851.74 and USD1,667,521.58 ought to be absorbed or borne by Shell. This amounts to a deduction of RM889,866 and USD555,573 for mobilisation and demobilisation costs and a deduction of RM443.955 and USD500.256 for weather downtime costs.
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  • Spring '17
  • Shell, Complaint

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