Dispute Resolution

Mediating contractual disputes

Pipeline projects are extremely expensive and usually involve an operator working with several suppliers. When problems occur contractual disputes can cost many millions of dollars.

 For example – if a supplier provides pipes to a contractor during a project and during the pipelaying process oil production declines 50-75% both supplier and contractor will wish to examine the issue. Should the issue be caused by problems with the pipe shape and found to be the fault of the supplier the contractor will want to recoup additional project costs from the supplier.

OMS third party inspection services

Disputes such as this are usually resolved by referring to verifiable information from an independent third party. OMS third party inspection services provide this type of information, using calibrated specialist tools and recording systems to supply measurements that are in line with national standards, properly logged and appropriately documented

Our services include:

• Calibrated specialist tools for surveying work

• Full traceability of all measurements back to national standards

• Extensive project experience from some of the most demanding pipeline projects worldwide

• Expert testimony and supporting documentation for contractual negotiations and legal cases

Examples: resolving disputes with OMS

Offshore pipe ovality issues

Our client was supplied with pipe measured under a scheme that underestimated the extent of pipe ovality. OMS measured the pipe accurately and provided the pipelay company with a scheme that improved productivity aboard the vessel by more than 100%. We also provided detailed reports on the true shape of the pipe and an explanation for the difference between that and the sample dimensions supplied by a pipe mill.

Onshore pipe quality

OMS was called in to resolve a dispute between the pipeline owners and the company contracted to weld the pipe. Many of the pipes were damaged in various ways. The pipeline owners were unwilling to acknowledge the problem contractually despite an initial expert opinion. We sent a team out to the pipe storage sites and carried out a fully traceable survey, investigating coating, pitting, overspray, gouges, ovality, bevel geometry and miscellaneous damage and resolving the dispute to both parties’ satisfaction.

Pipe mill production

A substantial project was using two pipe mill manufacturers in different countries. Pipe manufactured by the first company had shape issues that caused problems when welding. In a sensitive situation where companies’ reputations are threatened and substantial costs are involved it is vital to provide accurate, traceable measurements with full documentation and verification. When OMS was brought in we were able to provide the information required, along with rigorous authentication of our methodologies, allowing the dispute to be resolved via facts about the issues caused by the pipes rather than opinions about its quality.

Weld corrosion failure

Issues in the weld region were causing a pipeline to fail. OMS measured the pipe welds in-situ in a riser and onshore when the pipe was brought in for inspection. We provided definitive information to the client on the quality of welds carried out several years earlier, including on the significant HiLo mismatch between the pipes.