KUALA LUMPUR: MISC Bhd’s unit Gumusut-Kakap (L) Ltd (GKL) has been awarded US$254.44million for variation works done on behalf of Sabah Shell Petroleum Ltd.
MISC said 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. It said the production system was for the production of crude oil.
Recall that on Sept 30, 2016 MISC had filed adjudication proceedings against Sabah Shell.
Following the adjudication proceedings, an adjudication decision has been issued in GKL’s favour and GKL was awarded the total sum of US$254.44mil and applicable interest and costs of RM308,634.
“The adjudication decision is binding on GKL and Sabah Shell pursuant to CIPAA 2012.
“This adjudication 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,” it said.
