Aquadrill US Gulf LLC v BP Exploration and Production Inc - United States District Court Southern District of New York Case No 1-21-cv-08156-AKH - Order and Opinion Granting Motion to Confirm and Denying Motion to Vacate the Arbitration Award - 15 November 2021
This case arises out of a contractual dispute and subsequent arbitration between Petitioners Aquadrill US Gulf LLC, Aquadrill Gulf Operations Vela LLC, and Aquadrill Gulf Operations Auriga LLC (collectively "Petitioners") and Respondent BP Exploration & Production, Inc. ("Respondent"). The Parties entered into three seven-year contracts (the "Contracts"), under which Petitioners provided drilling rigs and personnel to Respondent for its use in offshore drilling operations in the Gulf of Mexico. The Parties dispute the interpretation of a section in the contracts, involving changes in legislation and regulations. Under Petitioner's reading, Respondent must pay for Petitioner's tax liabilities under the Base Erosion Anti-Abuse Tax ("BEAT"), 26 U.S.C. § 59A (2017), which disallows deductions for payments from U.S. taxpayers to foreign affiliates. Pursuant to Section 10(a)(3)-(4) of the Federal Arbitration Act ("FAA"), 9 U.S.C. §§ 201 et seq., Petitioner asks me to vacate the arbitral award rejecting Petitioner's interpretation, and to remand for the appointment of a new tribunal. ECF No. 1. Respondent asks me to confirm the Award. For the reasons below, the petition is denied and the Award is confirmed.
International Centre for Dispute Resolution, ICDR, Arbitration