Oil Subcontractor Can Force Arbitration, 9th Circ. Says


The Ninth Circuit on Thursday ordered a lower court to compel arbitration in a contractual dispute between oilfield services company Superior Energy Services LLC and Cabinda Gulf Oil Co. Ltd., a Chevron subsidiary, saying a lower court had applied the incorrect precedent.

A three-judge panel said the California district court erred in spurning Superior’s assertion that as the subcontractor to a main contract relating to oil exploration off the coast of Angola between Cabina and Operatec Maquinas e Representacoes LDA, an Angolan company, it was an intended third-party beneficiary of the general contract and thus had the right to compel arbitration...

Superior Energy is represented by Mark Trachtenberg and Will Feldman of Haynes and Boone LLP.

Excerpted from Law360. To read the full article, please click here (subscription required).

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