Norwegian ocean bottom node survey firm Magseis Fairfield ASA on Tuesday disclosed an ongoing mediation process between Magseis Fairfield ASA and Fairfield Industries Inc. regarding certain contractual claims between the parties.
On October 30, 2018, Magseis ASA entered into a transaction agreement for the purchase of all the shares in Fairfield Industries International Limited and all membership interests in Fairfield Seismic Technologies LLC from Fairfield Industries Inc. The transaction was completed on December 18, 2018.
According to Magseis Fairfield, the first notification regarding a potential claim was sent by Magseis Fairfield to Fairfield Industries Inc. in March 2019.
The mediation process relates to a project in the Middle East that represented a major part of Fairfield Seismic Technologies’ project backlog at the time of the transaction, the company said, without sharing detail on the dispute itself.
"While the process has progressed to mediation since then [March 2019], no certainty can be given to the outcome of the mediation process nor the timing of any such outcome," the company said.
Commenting as part of the announcement, Carel Hooijkaas, CEO of Magseis Fairfield said: "This announcement is a response to questions received by Magseis Fairfield ASA and an attempt to avoid unnecessary speculations. The company's management and board are pursuing the company’s interests in this case, although the possible outcome of the mediation process remains uncertain. Meanwhile, our main focus remains on the continuing operational and financial success of Magseis Fairfield in an improving market for OBN seismic services.”
Magseis Fairfield said it would provide further information about the mediation process when relevant, including with respect to any material developments in such a process.
According to the company, the last mediation hearing that was scheduled for October 2021 has repeatedly been postponed due to covid-19 travel restrictions and is now scheduled for March 2022.