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MISC awarded $254.5m in claim against Sabah Shell for increased rates

MISC unit Gumusut-Kakap (L) Ltd (GKL) has won its claim for increased day rates against Sabah Shell Petroleum Company Ltd.and has been awarded $254.4m by the Kuala Lumpur Regional Centre for Arbitration, the company said in a stock market announcement.

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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