Published: Friday September 21, 2012 MYT 6:55:00 PM
Updated: Friday September 21, 2012 MYT 7:25:41 PM
SapuraKencana files statement of claim against ONGC
KUALA LUMPUR: SapuraKencana Petroleum Bhd's unit has started arbitration proceedings against India's state-owned Oil and Natural Gas Corporation Ltd (ONGC) following a dispute over a December 2005 contract to revamp 26 well platforms in India.
SapuraKencana said on Friday its unit Sarku Engineering Services Sdn Bhd had filed a statement of claim against ONCG in relation to disputes following the contract for 1.063 trillion Indian rupees and US$123.82mil (including interest, costs, losses and damages).
"The arbitration proceedings are not expected to have an adverse material impact on the earnings and net assets of the company. Based on the advice from Sarku's legal advisors, the directors of the company are of the opinion that Sarku has a reasonable basis for its claims against ONGC," it said.
To recap, the then SapuraCrest Petroleum Bhd announced on Jan 3, 2006 that Sarku had on Dec 30, 2005 received a notification of award from ONGC about the contract to revamp 26 well platforms.
The contract had required the revamping and refurbishment of the well platforms in Mumbai High North, Mumbai High South and Heera.
The price of the works under the contract then was US$30.31mil and 1.904 trillion rupees.