Progress expected following resumption of tough Future Submarine negotiations

08 October 2018

Negotiations resumed in Canberra on 8 October between the Australian Department of Defence (DoD) and French shipbuilder Naval Group with hopes of an early break in the impasse over a strategic partnering agreement (SPA) for Australia's AUD50 billion (USD36 billion) Future Submarine programme.

The overarching SPA will set out terms and conditions that will endure for the entire Sea 1000 programme, avoiding the need to renegotiate subsequent phases.

Negotiations were initially intended to have been completed in 2017, a timeframe informed sources said was subsequently realised to have been unrealistic.

The SPA schedule has reportedly been amended several times, most recently in the unrealised hope of agreement prior to the expiry of a three-year AUD500 million (USD352 million) design and mobilisation contract (DMC) that was signed in September 2016 and expired on 28 September this year.

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