Author Topic: Merged: Brunei's Nakhoda Ragam OPVs - from court case to sale  (Read 7100 times)


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BAE Systems is taking the Sultan of Brunei to court

BAE Systems, Britain's largest defence contractor, is taking the Sultan of Brunei, one of the world's richest men, to court over a $1bn dispute involving an order for three naval ships.

The dispute centres on a lucrative export order, estimated to be worth over £600m ($1.13bn), to build three offshore patrol vessels for the Royal Brunei armed forces.

The contract was agreed several years ago and BAE, headed by Mike Turner, the chief executive, launched the first ship to much fanfare in January 2001. The other two ships have since also been completed.

However, all three remain moored at BAE's Scotstoun yard on the Clyde, as the Sultan has refused to accept them because they allegedly fail to meet his specifications.

"Anyone who flies over the Clyde can see the ships just sitting there, not doing much," said one executive last night.

Talks to resolve the dispute have been taking place for almost a year. It is understood that a date has now been set for the case to be heard at the International Court of Arbitration in Paris.

"We are currently in arbitration and consequently cannot discuss the issue," a spokesman for BAE confirmed last night.

Senior defence industry executives believe that in this instance the deficiency may not lie in BAE's expertise at shipbuilding or flaws with the ships themselves. They believe the Bruneians may lack the correctly trained personnel needed to run the highly sophisticated vessels.

The 95m long ships, which are equipped with Exocet and Sea Wolf missiles, are meant to be used for maritime policing, anti-aircraft, surface and submarine warfare, as well as naval gunfire support.

BAE has never disclosed the financial terms of the contract but industry analysts estimate that each ship would be worth well in excess of £200m, making the total contract worth over £600m.

Executives close to the process said last night that a formal resolution to the dispute could still be months away. However, arbitrated awards are not subject to appeal.

The Sultan is one of the world's absolute rulers. However, in his birthday speech last year he announced that he wanted to give Brunei's 350,000 people more say in the oil-rich country's affairs.

Brunei, on the north coast of Borneo, has one of the world's highest per capita incomes because of its oil and gas resources. No one was available for comment yesterday at the Brunei embassy in London.



The Nakhoda Ragam class of 1,940t offshore patrol vessels are being built for Brunei by BAE Systems. The first and second of class, Nakhoda Ragam and Bendahara Sakam, were launched in January and June 2001 at the Scotstoun shipyard of BAE Systems Marine. The launch of the third patrol vessel, the Jerambak, took place in June 2002. The Royal Brunei Navy will operate the ships from the Muara naval base.

The governments of UK and Brunei agreed a Memorandum of Understanding in 1994 on defence co-operation. Brunei issued a revised request for tenders (RFT) in 1995 for three offshore patrol vessels. In 1995 it was announced that BAE Systems (then GEC Shipbuilders) had been selected as the prime contractor.

The ship design is a new variant of the F2000 family. A high level of automation in the ship allows operation by a crew of 79. Accommodation is provided for the crew and an additional 24 personnel if required.

The patrol vessel is equipped with the Nautis II command and weapons control system supplied by Alenia Marconi Systems. The Nautis II has multifunction consoles to support engagements against airborne, surface and submarine threats. Data is downloaded from the ship's sensors and weapons systems to provide a battlezone/operational area situation display as well as navigation, target tracking, threat and weapons allocation and weapons control functions. The command and control system can also operate in training mode to provide realistic simulated scenarios and engagements.

The vessel's anti-ship missile is the MBDA (Aerospatiale) Exocet MM40 Block II missile, with a range of 70km. Range and bearing data are downloaded into the missile's on-board computer. The missile uses inertial guidance for the cruise phase of the trajectory and then active radar homing by active monopulse seeker head. The sea-skimming missile approaches the target at high subsonic speed, 0.9 Mach. The two blocks of four launch tubes are arranged crossed, one block facing starboard and one to the port side, on the missile deck to the stern of the main mast.

The ship's surface to air missile is the MBDA (BAE Systems) Seawolf, which has a range of up to 6km against aircraft or missiles. The missile uses a microwave link command-to-line-of-sight guidance system with television and radar tracking. A solid fuel propulsion rocket provides a speed of Mach 2.5. The 16-cell VLS (Vertical Launch System) is installed in the forward main gun deck between the main gun and the bridge.

The main gun, Oto Melara 76mm Super Rapid, installed on the forward gun deck, provides defence against surface and airborne targets. The firing rate is 110 rounds per minute and range is up to 16km. Two MSI Defence DS 30B REMSIG 30mm guns, installed on the port and starboard side on aft upper deck forward of the flight deck, are capable of firing 650 rounds per minute to a range of 10km.

The ship is equipped with two triple 324mm torpedo tubes from BAE Systems.

The electronic warfare suite includes a Thales Sensors Cutlass 242 electronic support measures system and a Scorpion radar jammer. The Super Barricade decoy launch system from Wallop Defence is installed on both sides of the raised mast deck just aft of the bridge.

The aft flight deck, approximately 285m², has a single landing spot for a medium size helicopter, such as the S-70B Seahawk. The ship does not provide hangar facilities.

The ship is equipped with a Radamec 2500 electro-optic weapons director, which includes an eye-safe laser range-finder, TV and thermal imager and is used for gun fire control and surveillance. The hull-mounted sonar is the medium frequency Thales Underwater Systems TMS 4130C1.

The large rectangular antenna of the E- and F-band air and surface search radar, the Alenia Marconi Systems (AMS) AWS-9 3D for surveillance and target indication, is mounted at the top of the main mast tower. The radar system includes two AMS 1802SW I/J band radar trackers, which provide target illumination for the Seawolf missile system.

The ship is powered by four MAN 20 RK270 diesel engines driving two shafts. The ships achieve a speed of 30 knots. The range at an economical speed of 12 knots is 5,000 miles.

« Last Edit: August 05, 2007, 12:42:14 PM by Adroth »


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Re: Merged: Brunei's Nakhoda Ragam OPVs - from court case to sale
« Reply #1 on: April 02, 2005, 10:33:20 PM »
Maybe the PN can aqcquire these magnificent ships by half of its original price, The philippines has the best computer specialists in the world, I have no doubt the PN can operate that high tech ships
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Re: Merged: Brunei's Nakhoda Ragam OPVs - from court case to sale
« Reply #2 on: April 03, 2005, 02:06:11 AM »
Those three ships worth $1.13 billion dollars.  That's more than the entire budget of the AFP.  Even if those ships were sold to PN for half price, the Philippine Navy still doesn't have the money.  Probably the entire budget of the Philippine Navy is not even enough to buy one of those ships.
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Re: Merged: Brunei's Nakhoda Ragam OPVs - from court case to sale
« Reply #3 on: June 17, 2007, 05:05:55 AM »
[SIZE=12PT]Brunei weighs options for selling on BAE Systems OPVs[/SIZE]
Richard Scott Consultant

Date Posted: 13-Jun-2007

BAE Systems and Royal Brunei Technical Services have settled a contractual dispute over the delivery of three OPVs

Lürssen has been approached to act as a broker for the disposal of the ships

The Brunei government is considering options to offload three new 95 m offshore patrol vessels (OPVs) after settling a long-running contractual dispute with builders BAE Systems.

With no prospect of the ships entering service with the Royal Brunei Navy (RBN), German shipbuilder Lürssen Werft has been approached to act as a broker for the onward sale or lease of the ships.

The former Yarrow Shipbuilders ? now subsumed in BAE Systems Surface Fleet Solutions ? was selected in July 1995 as shipbuilder and prime contractor for the three F 2000-type OPVs under a memorandum of understanding signed between Brunei and the UK.

A contract worth more than GBP700 million (USD1.4 billion) was awarded in January 1998 following protracted negotiations.

First-of-class Nakhoda Ragam was presented for acceptance in December 2003. The second ship ? Bendahara Sakam ? completed its trials programme in May 2004, with the third and final ship Jerambak presented for acceptance in December 2004 following conclusion of its trials programme.

However, Royal Brunei Technical Services Sdn Bhd ? the Brunei government's procurement agent ? refused to take delivery of the ships on the grounds that they did not meet contract specifications. BAE Systems, which insisted that the three vessels had demonstrated contracted performance, subsequently instigated legal proceedings.

A closed hearing was held at the International Court of Arbitration in London in June 2006. A judgement had been expected by the end of last year but in the event the court's adjudication was set aside to allow the two parties to engage in further out-of-court negotiations.

In a statement released to Jane's, a BAE Systems spokesman said that the company and Royal Brunei Technical Services "have reached an amicable conclusion to issues related to the contract for the supply of three OPVs". The spokesman declined further comment.

It is understood that Brunei has taken formal delivery of the ships, but has no plans to commission the ships into the RBN. Furthermore, rather than engage BAE Systems or the UK Ministry of Defence (MoD) as an agent to re-market the ships, Royal Brunei Technical Services has turned instead to Lürssen to explore opportunities for onward transfer to a third party.

Neither the Brunei MoD nor Lürssen have responded to Jane's requests for comment.

While ship brokerages are commonly used for the sale of merchant and recreational vessels, it is exceptionally rare for a commercial agent to be appointed to sell on naval ships. This is because of the need to fully satisfy end-user licensing controls ? requiring any purchaser to be approved by the government that sanctioned the original export contract ? and the requirement for any purchaser to be assured of long-term support from the design authority and specialist original equipment manufacturers.

All three OPVs currently remain alongside at BAE Systems Surface Fleet Solutions' Scotstoun yard in Glasgow. The company has maintained the vessels on a care and maintenance basis throughout the duration of the dispute, with each ship being taken to sea at six-monthly intervals.
« Last Edit: August 05, 2007, 12:40:20 PM by Adroth »


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Re: Merged: Brunei's Nakhoda Ragam OPVs - from court case to sale
« Reply #4 on: June 17, 2007, 06:49:04 AM »
Well armed beauties, wonder if Brunei could sell them to us at a friendly price...

…The Filipino, it seems, has lost his soul, his dignity, and his courage. We have come upon a phase of our history when ideals are only a veneer for greed and power, (in public and private affairs) when devotion to duty and dedication to a public trust are to be weighted at all times against private advantages and personal gain, and when loyalties can be traded. …Our government is in the iron grip of venality, its treasury is barren, its resources are wasted, its civil service is slothful and indifferent, its armed forces demoralized and its councils sterile., We are in crisis...

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"Taking into account the disadvantages they have to fight against in terms of arms, equipment and military discipline, without artillery, short of ammunition, powder inferior, shells reloaded until they are defective, they are the bravest men I have ever seen...

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Re: Merged: Brunei's Nakhoda Ragam OPVs - from court case to sale
« Reply #5 on: June 17, 2007, 08:24:47 AM »
Well armed beauties, wonder if Brunei could sell them to us at a friendly price...

Why should they?


In my opinion these ships are more frigates than OPVs, and probably quite costly to operate


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Re: Merged: Brunei's Nakhoda Ragam OPVs - from court case to sale
« Reply #6 on: June 17, 2007, 08:38:08 AM »
We talked about this in a thread previously. :shock:

They are not very big considering their capabilities (like a small ship armed to the teeth) but are still actually larger than the Jacinto's. In fact they would be larger than our current biggest Combat warship , the Cannon Class Frigate Rajah Humabon. 95m & 1940 t vs. 93m 1620t. These ships are very capable simply calling them OPV's is a bit of an understatement, other classifications have it as a corvette or even light frigate (indeed it's bigger then our own frigate!) Their addition to the fleet would be the tremendous, making the PN very credible IMO. :angel: taking it all the way to the 21st century. oops it is the 21st century.

We can not afford them outright (even if as suspectd that the contracts are a bit , shall we say rich! :))and would need a package with BAE for training and spares. I do not even advocate messing around PN modernization sched since it's so far off even with say a 50% discount, even if the plan really does include getting modern corvettes eventually. BUT on a political level it may be possible to find some sort of accomodation with RBN as we are quite close to them anyway. Perhaps a 10 or 15 year lease with a rent a navy component (we get the ships but part of the fleet must be at their disposal). A bit mercenary but just some creative ways to find a winwin solution. I think if GMA spoke to the Sultan they may actually go for it as long as they get their money back in the long run. He's got so much assets here anyway.  :eyes: Oh well nice to dream.
« Last Edit: June 17, 2007, 08:41:21 AM by bustero »


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Re: Merged: Brunei's Nakhoda Ragam OPVs - from court case to sale
« Reply #7 on: June 17, 2007, 08:57:45 AM »
if i am not mistaken, these ships are almost ten years old so i would like to assume that much of the stuff placed on each ship is also almost years old. perhaps when Brunei decides to have them sold off, the price of each ship would be fair enough for a ten-year old OPV. :nuts:

however, i tend to agree with bustero's suggestion that the PN take a 10-15 year lease on all thee Nakhoda Ragam class OPVs. who knows if we can get discounted prices for those almost ten-year old warships when we ask Brunei to have them leased to us? :eyes:
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Re: Merged: Brunei's Nakhoda Ragam OPVs - from court case to sale
« Reply #8 on: June 17, 2007, 03:58:22 PM »
Not 10, BUT JUST AROUND 2-5 YEARS OLD depending on which ship.  The 'Ragam' Class Light Frigate / Corvette are quite sophisticated for it's size....

Here is the analysis of Richard Beedall (a naval writer)
"The Nakhoda Ragam's are not OPV's, they are very sophisticated warships that require a well trained crew that may be "lean" compared with say a T23 but is still twice the size of a Castle or River Batch 2 (i.e. HMS Clyde).

It's been reported that a major reason why Brunei didnt want to take delivery of the three ships is because they had not originally realised just how difficult and costly it would be to keep them operational, and the extent to which they would have to develop expensive support and maintenance facilities at their Muara Naval Base.

Without mothballing or removing most of their equipment, it would similarly be impossible to forward deploy an RNi'sed "Nakhoda Ragam" for years at a time with just an occassional local "service" by contractor support staff (and get about 280 days ship availablity a year) ala the Falklands Islands Patrol ship.

Another serious problem for RN service is that they have only a 14 day endurance - by contrast the Castle's are rated at 28 days and the River's at 21 days.

Even if the Nakhoda Ragam's were being "given away" at just £50 million each (and you could get another River Batch 2 for less than that), it would cost a lot more than that to get them in service and I think the RN has much higher priorities for any "spare" cash. I would put the money towards maintaining current ships and getting the first C2s in the construction pipeline.

Support, Maintenance and Logistics -- these would be Royal Brunei Armed Forces' problem on operating these light frigates.  They are not as sophisticated as the Royal Malaysian Navy which operates the larger 'Jebat' class frigates (which was the source ship for the design)... and RMN is ordering an additional and improved two of these 'Jebat's...

As to possible markets for these three very nice light frigates with short legs, maybe some mid-east or near east country would be interested -- but Oman and Pakistan has corvette orders in the pipelines... 
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Re: Merged: Brunei's Nakhoda Ragam OPVs - from court case to sale
« Reply #9 on: August 05, 2007, 11:11:34 AM »
Brunei warships to go on sale

Three warships built at BAE shipyard in Glasgow for the Royal Brunei Navy are finally to be sold after a long-running legal dispute was resolved.

A £600m deal between BAE Systems and Brunei was signed in 1998, resulting in the completion of three coastal patrol frigates by 2004.

However the Sultan of Brunei claimed the ships were not as he had ordered, and they remained berthed in Scotstoun.

The arbitration dispute ended in May, allowing the ships to be sold on.

Following finalisation of contracts, the ships were able to be handed over to the Royal Brunei Technical Services (RBTS), which is the Brunei's equivalent of the Ministry of Defence.

A spokesman for BAE Systems said that the shipbuilders had been paid for the completion of the ships, and that the ships had now been handed over to RBTS.

He declined to comment on any alleged problems with the specification of the ships or on the company's relationship with Brunei.

A German company, Lurssen, is said to be acting as an agent for Brunei for the sale of the three vessels.

The ships, the KDB Nakhoda Ragam, KDB Bendhara Sakam and KDB Jerambak, were originally destined for the Offshore Patrol Vessel (OPV) squadron of the Royal Brunei Navy.
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Re: Merged: Brunei's Nakhoda Ragam OPVs - from court case to sale
« Reply #10 on: August 05, 2007, 11:15:34 AM »

--  Photo by Lesley Wild shows the OPV being towed from the Clyde by  Greenock tugs

Brunei navy ships leave the Clyde

They have almost become landmarks, now they are off to Barrow to await a buyer

Shipping Times, August 3, 2007.

They've been a familiar sight on the River Clyde for some years now, but now the three 'Sultan's boats' as they are known, are off to a new home.

With work on the Type 45 programme proceeding at a pace, dockyard space is at a premium at the two BAE Systems' Glasgow shipyards, and frankly, the Offshore Patrol Vessels built for the Royal Brunei Navy are taking up too many valuable berths.

The first of the class has already reached her new homeport at Barrow, Cumbria and the rest are due to join her soon.

The vessels are amongst the highest spec ships of their type, and therein lies the problem. The Brunei navy wanted them to be stuffed full of the latest and greatest wizardry and they got it. Trouble is, they don't have the personnel to man them. Initially the Brunei government said the ships were not up to spec, but that was dismissed out of hand not only by their builders BAE Systems, but practically everyone who knew a thing or two about the contract, and even those who didn't.

The rumour regarding the lack of trained personnel in the Royal Brunei Navy was circulating around the banks of the Clyde long before the dispute with BAE Systems over the ships, and was recently acknowledged as true.

However BAE Systems are at pains to point out that Brunei has coughed up for them with the full price, but now the RBN wants someone to buy them.

Ship-watchers on the Clyde got an inkling of what was going on when NAKHODA RAGAM was seen being towed down the firth by local tugboats. With no available crews, towing is the only option. All three will sit at Barrow until a buyer is found.

One wonders if a special offer will be forthcoming - "Buy Two Get One Free?"
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Re: Merged: Brunei's Nakhoda Ragam OPVs - from court case to sale
« Reply #11 on: August 05, 2007, 10:39:57 PM »
Is it possible if our Navy lease the ship and train with RBN and maybe as well as patrol both our coastline? Maybe we can get a good price and train both our Navy and RBN? Mukhang maganda naman and diplomatic relarionship antin sa Brunie.


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Re: Merged: Brunei's Nakhoda Ragam OPVs - from court case to sale
« Reply #12 on: August 05, 2007, 10:53:34 PM »
Is it possible if our Navy lease the ship and train with RBN and maybe as well as patrol both our coastline? Maybe we can get a good price and train both our Navy and RBN? Mukhang maganda naman and diplomatic relarionship antin sa Brunie.

The ship is no longer with the RBN. The article states that the ships are in the hands of BAE systems in preparation for sale. Any deals will have to be made with the British.
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Re: Merged: Brunei's Nakhoda Ragam OPVs - from court case to sale
« Reply #13 on: August 06, 2007, 05:47:37 PM »
my bad I missed that. Thanks Sir A.


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Re: Merged: Brunei's Nakhoda Ragam OPVs - from court case to sale
« Reply #14 on: August 05, 2009, 10:46:46 AM »
Another update:

Algeria looks hard at Brunei's OPVs
Algeria is in the running to acquire three 95 m F2000 offshore patrol vessels (OPVs) built in the UK for the Royal Brunei Navy...

Source: Janes jni

And it's up to the mods if they want to merge this thread with another thread on the same topic below:

"2 of Brunei's Nakhoda Ragham Frigates spotted at anchor" Timawa Images section thread
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