PETALING JAYA: MISC Bhd unit Gumusut-Kakap (L) Ltd (GKL) has been awarded US$254.44mil (RM1.13bil) by the Kuala Lumpur Regional Centre for Arbitration following arbitration proceedings between MISC and Sabah Shell Petroleum Company Ltd.
MISC said in an announcement to Bursa Malaysia yesterday that the amount would be paid as increased day rates under the Nov 9, 2012 lease agreement between GKL and Sabah Shell for building and leasing the Gumusut-Kakap semi-floating production system.
The production system was for the production of crude oil, the group said in the announcement.
Sabah Shell would also have to pay interest and costs of RM308,634.04 to GKL.
MISC had filed adjudication proceedings against Sabah Shell on Sept 30, 2016.
“The adjudication decision is binding on GKL and Sabah Shell pursuant to CIPAA 2012.
“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 Dec 31, 2017 onwards,” the group said.
MISC’s shares closed one sen higher yesterday to RM7.62 on a volume of 2.02 million shares.