Boustead, Petronas Carigali reach settlement

PETALING JAYA: Boustead Holdings Bhd has mutually agreed on a separate settlement agreement with Petronas Carigali Sdn Bhd and the joint operating partners following negotiations with the parties.
In a filing with Bursa Malaysia today, Boustead said its subsidiary MHS Aviation Bhd has entered into separate confidential agreements or undertakings Petronas Carigali, ExxonMobil Exploration and Production Malaysia Inc, EnQuest Petroleum Production Malaysia Ltd, as well as Sapura Exploration and Production (PM) Inc.
The settlement follows the commencement of arbitration proceedings by MHS Aviation against Petronas Carigali, and the subsequent early termination of MHS’ contract to provide five EC225 helicopters for the joint operating partners’ use.
In view of the mutual decision, MHS will withdraw its arbitration proceedings against Petronas Carigali upon full payment of the settlement.
Boustead’s share price fell 0.39% or 1 sen to close at RM2.58 today with a total of 26,700 shares traded.