Technip Oceania sues Shelf Subsea

Technip Oceania is taking contractor Shelf Subsea to the state’s highest court over an alleged failure to refund an overpayment.

Oil and gas contractor Technip Oceania, an arm of TechnipFMC group, launched legal proceedings against Shelf Subsea and Shelf Subsea Australia (SSA) in the Supreme Court of Western Australia last week.

According to the Supreme Court writ, Technip and Shelf Subsea entered into an agreement in October 2015 to supply air diving services to Technip.

Shelf Subsea is a diving contractor based in Osborne Park and has an office in Singapore.

The writ said Technip made payments to Shelf Subsea according to invoices issued in 2017 and 2018, but found some parts were not properly due in the amount claimed.

Technip alleged both parties agreed that certain of the invoices were to be discounted and not paid in full because of overpayment of $US210,298, roughly equivalent to $A304,917.

The writ said Shelf Subsea and SSA acknowledged the overpayment and assured Technip the outstanding sum would be discharged.

In the writ, Technip claimed no further payments were made by SSA after an initial $50,000 in March 2020, despite the parties having entered an agreement to pay in instalments.

Technip alleged Shelf Subsea and SSA were liable for a sum of not less than $US160,261, about $A232,367.

Shelf Subsea allegedly became unable to discharge the overpayment after conveying benefits of its assets to SSA in 2018, forgiving a debt of $17 million owed by SSA to Shelf Subsea, according to the writ.

Australian Securities and Investment Commission data shows Shelf Subsea was deregistered in early October 2020.

The writ said Shelf Subsea applied for a solvent deregistration with a declaration it had no outstanding debts.

Technip alleged in the writ that Shelf Subsea and SSA knew the declaration was false.

“No notice of any such application or declaration was given to Shelf’s acknowledged creditor, Technip,” it claimed.

Technip is claiming restitution for unjust enrichment of Shelf and SSA, being the overpayment, and damages for breach of the Australian Consumer Law.

Shelf Subsea has been contacted for comment.