MISC’s wholly owned subsidiary Gumusut-Kakap Semi-Floating Production System (GKL) has kick-started arbitration proceedings against the Malaysian subsidiary of Shell.
The move is a bid to settle contractual disputes totalling $245million against Sabah Shell (SSPC).
“The legal proceedings were commenced to seek resolution on contractual disputes covering claims for outstanding additional lease rates, payment for completed variation works and other associated costs under the lease agreement dated Nov 9, 2012 entered into between GKL and SSPC for the construction and lease of the Gumusut-Kakap Semi-Floating Production System (Semi-FPS) for the purposes of the production of crude oil,” MISC said.
The legal proceedings are not expected to affect earnings, according to MISC.
After consulting with solicitors, the firm said it was confident in its case.
Elsewhere, Shell fell from the top 10 standings in a global rating for energy firms. Read more here.