MISC had filed adjudication proceedings against Sabah Shell on 30 September 2016 and arbitration proceedings followed. Sabah Shell would also have to pay interest and costs of MYR308,634 ($69,356) to GKL, it added.
The claim was for increased day rates under GKL's lease agreement with Sabah Shell in 2012 for building and leasing the Gumusut-Kakap semi-floating production system.
“This decision is expected to have a positive impact on the earnings per share, gearing and net assets per share of MISC for the financial year ending 31 December 2017 onwards,” MISC said.
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