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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.

Vincent Wee, Hong Kong and South East Asia Correspondent

February 15, 2017

1 Min Read
Kalyakan - stock.adobe.com

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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About the Author

Vincent Wee

Hong Kong and South East Asia Correspondent

Vincent Wee is Seatrade's Hong Kong correspondent covering Hong Kong and South China while also making use of his Malay language skills to cover the Malaysia and Indonesia markets. He has gained a keen insight and extensive knowledge of the offshore oil and gas markets gleaned while covering major rig builders and offshore supply vessel providers.

Vincent has been a journalist for over 15 years, spending the bulk of his career with Singapore's biggest business daily the Business Times, and covering shipping and logistics since 2007. Prior to that he spent several years working for Brunei's main English language daily as well as various other trade publications.

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